USD/MXN holds near 24.00, consolidates a 4.4% daily gain

• Mexican peso has one of the worst days in history after plunging more than 4% versus the US dollar. 
• Panic continues to drive price action across financial markets. 

The USD/MXN jumped earlier today to 24.11, hitting a new record high. Then it stabilized and it has been moving in a range between 24.10 and 23.60, holding to most of its daily gains. The collapse in equity markets, rising US yield and the 20% slide in crude oil pushed USD/MXN to the upside. 

The demand for the greenback in Mexico remains strong. After a 4.5% rally, the correction of USD/MXN has been relatively small and limited. The pair is about to post a record close. The rally of the recent days, brick back the memory of the 1994 Tequila crisis. 

The Mexican peso is among the worst performers over the last thirty days. Some analysts argue MXN is the proxy for emerging markets so it usually suffers most. Other also point to how the Mexican government is handling the situation. Mexican yields jumped on Wednesday. The 10-year rose to 8.30%, the highest level in a year. 

USD/MXN rose almost 30% in a one-month period while USD/RUB gained 27% and USD/COP 22.80%, the biggest gainers. On Wednesday, the worst was the Russian ruble with a 7.2% rally in USD/RUB, including a break above 80.00.

Technical levels