TURMOIL IN MARKETS AS MEXICANS ABANDON PESO

The Mexican government today decided against continuing to support its currency in trading markets after the peso lost a third of its value in two days of frantic trading. The decision to allow market forces to determine the peso's value will remain in effect for 60 days and has the support of business and labor leaders, who say they'll freeze wages and prices throughout the program. The Clinton Administration said it had established a $6 billion fund to support the peso, as concern mounted about the prospect for companies with significant investment portfolios in Mexico and Latin America. The peso's collapse began as word spread of the intensifying Chiapas rebellion, although a worsening balance of trade and a recent outflow of foreign capital also contributed to increasing skepticism about the health of the nation's economy.