Mexican Markets Slump Despite Bailout
The signing of a $20 billion loan package Tuesday failed to boost the Mexican stock markets or the peso.
A sharp rise in interest rates, made as part of the package’s conditions, drew investors away from the stock market. And the peso weakened on expectations that the package would fail to soften Mexico’s economic pain.
The stock market’s main IPC index was down 86.95 points, or 4.92 percent, closing at 1,679.19. The battered peso weakened to 5.60 to the dollar, down from 5.55 Monday.