Mexico’s peso fell the most in a week as manufacturing and services contracted in the euro area, sapping demand for riskier assets in emerging markets.

The currency pared its gain against the dollar in 2012 to 5.6 percent, still the best performance among the 16 most-traded currencies tracked by Bloomberg.

Investors are “worried about economic growth in Europe,” Rafael Camarena, an economist at Banco Santander SA (SAN), said in a phone interview from Mexico City. “It’s being dominated by external issues.”