| | |  Business News | September 2008 
Mexico Peso Rallies After Fannie, Freddie Bailout
 Jason Lange - Reuters
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| | Treasury Secretary Henry Paulson, Jr. speaks during a news conference in Washington, Sunday, Sept. 7, 2008 on the bailout of mortgage giants Fannie Mae and Freddie Mac. The Bush administration's seizure of troubled mortgage giants is potentially a $200 billion bet that it will help reverse a prolonged housing and credit crisis. But private analysts worried that it may not be enough to stabilize the slumping housing market given the glut of vacant homes for sale, rising foreclosures, rising unemployment and weak consumer confidence. (AP/Susan Walsh) | | |
Mexico City - Mexico's peso staged a strong rally on Monday after the U.S. government seized control of mortgage giants Fannie Mae and Freddie Mac, soothing some of investors' most acute concerns about the U.S. economy.
The peso MEX01 strengthened 0.61 percent to 10.416 per dollar.
The U.S. government seizure of the two mortgage finance companies, announced on Sunday, was the latest in a series of emergency steps taken by U.S authorities to quell what is now a year-long credit market crisis.
The bailout takes some of edge off of fears of a financial meltdown that would the hurt the economy in the United States, Mexico's top trading partner.
Mexico sends about 80 percent of its exports to the United States.
(Editing by Walker Simon) |
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