Mexico not ruling out forex intervention as peso slumps

Mexico does not rule out another discretionary foreign exchange market intervention, the country's deputy finance minister said on Tuesday, adding that global volatility is set to continue in upcoming days over Brexit and U.S. Federal Reserve fears.

The Mexican peso fell to over four-months lows on Tuesday, weaker than levels that caused Mexico's central bank to intervene in February by hiking interest rates and selling dollars to banks.

"We can't rule out any intervention, and reiterate that we're in a period of very high volatility," Deputy Finance Minister Fernando Aportela said at an event in Mexico City.

The peso was trading down 0.7 percent at 18.971 per dollar, paring losses from a session low of 19.0250. It is nearly 5 percent weaker since Wednesday's close. The currency has fallen 10 percent against the dollar year-to-date.

He said the elevated volatility was due to risk aversion, amid concerns Britain may vote next week to leave the European Union, in a referendum known as Brexit. A Fed meeting this week is also fanning concerns, he said.