Mexico’s peso sank after the central bank said it will reduce a hedge program designed to tame volatility, signaling to traders the rally that made the currency the world’s top performer may have gone too far. The program, created in 2017 just as Donald Trump came into office in the US and boosted in 2020 during the pandemic, will be gradually reduced starting in September, according to a Thursday statement from Banxico, as the central bank is known. Banxico has around $7.5 billion of outstanding positions in these instruments. Operating conditions in the exchange market “have returned to adequate levels” of ... (full story)