Mexico’s real is down 2.3 percent to 54.2 U.S. cents in a day, according to the official peso exchange rate website, as investors scramble to protect their currencies.
The peso lost 6.6 percent against the dollar, the most since February, after the country’s central bank said last week it was tightening its monetary policy to prevent inflation from climbing to 3 percent.
The central bank also said that it was cutting interest rates to a record low of 1.25 percent.
The country’s currency is trading at around 53.3 pesos, down from the 54.9-pounds level that it reached on Wednesday.
Analysts expect the peso to weaken further against the greenback in the coming days, while a stronger dollar could boost the pesos value.
The central bank is expected to cut the benchmark interest rate to 2.25-percent for the next six months.
Mexico’s pesos fell against the U.K. pound, while the euro was down 0.2 percent to $1.096.
The yen was up 0.1 percent to 104.8 yen.
The U.P.E.E.-based currency index was also down, but down in all but one trading session.
The European Central Bank has not yet said whether it will keep its inflation target unchanged at the current level of 1 percent.