Last week, Banco de Mexico and the Mexican government delivered a double whammy to the financial markets (excerpt):
Mexico Battles Emerging-Market Bears With Surprise Peso Defense
The Mexican government’s unprecedented steps to protect the peso are off to a good start.
The currency posted its biggest rally in five years Wednesday after officials said they will increase the benchmark interest rate, reconfigure an intervention program to contain volatility and reduce government spending. It advanced another 0.5 percent on Thursday. The new measures came after the peso plunged 8.9 percent to start the year, the worst performance among major currencies, and was down 31 percent over the past 18 months as investors sold off emerging-market assets.