Mexican peso, as well as other currencies of Latin American countries, has been losing their value since Monday morning because of the rapidly spreading swine flu outbreak. This concern became so important in the past two days, that it pushed into the background all other economic and political issues, influencing currency rates.
The more cases of swine flu are revealed around the world, the more people are becoming concerned about it, and its rapidly generating nervousness. Besides Latin American currencies, other risk-sensitive currencies followed the tendency, Australian and Canadian dollars, Euro and other currencies fell.
But the Mexican peso still remains the hardest hit by the swine flu among all the currencies at foreign currency exchange trading market, as the economy of the country and the tourism sector will definitely suffer greatly.
Another reason for weakening of the peso is the earthquake, the epicenter of which was in Guerrero state, Mexico, and reached the capital of the country, which is 360km away. Other Latin American currencies also weakened: Colombian peso lost 2.2% to the dollar; peso of Chile lost 1.9%.
Euro and many other European currencies are also losing their positions especially that the flu starts to spread around the Europe.