By Natalia Rueda 
The local currency lost ground after Credit Suisse’s main shareholder refused to continue providing financial aid to the Swiss bank, heightening worries about the stability of the global banking system. The exchange rate ended the day at 18.9751 units against a record of 18.6050 units, representing a sharp decline of 37.01 cents or 1.99 percent.
The peso’s tumble highlights the risks posed by a potential banking crisis, especially in emerging markets like Mexico. Investors are wary of the potential for contagion, and a lack of confidence in the banking sector could further destabilize the Mexican economy.
The situation could be further complicated if the US dollar continues to strengthen against the peso. This could lead to a wider gap between the exchange rate in Mexico and its trading partners, making it more difficult for Mexican companies to export and compete abroad.
The Mexican government is taking steps to address the problem, such as raising interest rates and introducing capital controls. But only time will tell if these measures are enough to restore investor confidence and stabilize the peso.