UPDATE 7-Mexico unleashes surprise rate hike to smoke out peso speculators

(Adds fund manager comment, updates prices) By Miguel Gutierrez and Michael O'Boyle MEXICO CITY, Feb 17 (Reuters) - Mexico on Wednesday launched an assault on speculators who have battered the local peso currency by unleashing a surprise interest rate hike, a new intervention policy and budget cuts. Mexico's peso surged nearly 3 percent after the central bank offered dollars directly to banks, and then unexpectedly raised its benchmark interest rate by 50 basis points to 3.75 perc











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