Peso weakens to new historic low of 16.52 pesos per dollar

Mexico's peso weakened to a new historic low on Wednesday to trade at 16.52 pesos per dollar.

The head of Mexico's central bank said on Wednesday he will do everything possible to ensure that the depreciation of the peso does not hit inflation.

The Mexican currency has lost nearly 12 percent of its value against the greenback so far this year. 

Banco de Mexico Governor Agustin Carstens said the bank has to be vigilant to keep inflation low and stable, and that measures to protect peso are working.

"You can be sure that the Banco de Mexico will do everything in our tool kit to perpetuate this situation" of low and stable inflation, he said

Yesterday the central bank of Mexico sold US$200 million at an average price of 16.4268 pesos per dollar as part of an auction program to boost foreign exchange liquidity following a slump in the peso.