MEXICO CITY: Mexico's peso, which has been pummeled by fears a US interest rate hike would spur investor flight, rose over 1 percent on Wednesday after the US Federal Reserve raised borrowing costs.

The currency , which has tumbled more than 15 percent this year, reversed earlier session losses to gain over 1 percent. It later trimmed gains to trade at 16.9795 per dollar.

Copyright Reuters, 2015