GREEN VALLEY, AZ - JULY 31: Volunteer Rebecca Fowler displays Mexican pesos found in a backpack discarded by immigrants crossing into Arizona from Mexico along a backcountry trail on July 31, 2010 near Green Valley, Arizona. She was on a patrol for the non-profit group Samaritans, which delivers water to points near the U.S. Mexico border for immigrants crossing illegally into Arizona. Samaritans volunteers also provide medical assistance for distressed migrants, who often suffer from severe dehydration while crossing the desert. Immigrant aid groups and law enforcement alike say that the number of immigrants crossing illegally into Arizona from Mexico has slowed dramatically in 2010, with jobs scarce due to the U.S. recession and widespread fear in the Latino community associated with Arizona's new immigration enforcement law SB 1070. (Photo by John Moore/Getty Images) (2010 Getty Images)
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MEXICO CITY (AP) – Mexico says it's ready to intervene in currency markets to fight the peso's fall against the dollar amid concerns over dropping oil price and a possible increase in U.S. interest rates.
Mexico's Exchange Commission says that as of Tuesday, the government will begin a daily auction of $200 million whenever the peso falls at least 1.5 percent from the previous day.
The idea is to provide liquidity to a currency market that has been volatile in recent weeks. Experts attribute the instability to fears that investment in Mexico could slide in coming years in the face of lower oil prices and the possible flight of dollars away from Mexican debt toward higher interest rates elsewhere.
The commission is composed of the Central Bank and Treasury Department.
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