Mexico's peso recovers, political rumors denied

MEXICO CITY (AP) -- Mexico's peso is continuing to recover from its steep drop last week, and experts denied the resurgence of a leftist presidential candidate had anything to do with the decline.

They say continuing concerns about Europe's sovereign debt crisis and the U.S. economy are the driving forces behind the currency's volatility.

The peso closed Tuesday at an interbank rate of around 14.23 per $1, after falling as low as 14.60 in trading last week. The peso closed at 14.39 on Friday and 14.24 on Monday.

The depreciation had become a political issue after some media outlets attributed the drop to a poll released Thursday showing leftist Andres Manuel Lopez Obrador closing in on front-running centrist Enrique Pena Nieto. Some business groups opposed Lopez Obrador during his failed 2006 presidential bid.

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