Mexico's peso fell the most in 10 weeks amid falling global stock prices and mounting speculation the world economy is slowing.
The peso weakened 0.75 percent to 10.9858 per dollar at 11:44 a.m. New York time from 10.9045 on Jan. 18. The currency's decline was the largest since Nov. 9.
Rising unemployment and a contraction in manufacturing output in the U.S. have reinforced speculation that the world's largest economy is slipping into recession. The European economy may be starting to suffer from the U.S. subprime mortgage slump as industrial production shrinks and investor confidence wanes.
Slowing global growth threatens to trim consumer demand for Mexican exports, accounting for about 30 percent of gross domestic product.
Importance: The drop in the Mexican peso is one of many possible economic indications of a world economic "slow-down," apparently instigated by the recessing of the U.S.'s economy. Now in addition to the increased crime, President Calderon must contend with fostering economic stability and growth.
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