The Mexican government said Wednesday that it is dropping daily dollar auctions, raising interest rates and cutting government spending by 0.7 percent of GDP as it tries to counter falls of the peso and oil revenues.

The Treasury Department said it will cut federal spending by the equivalent of about 7.2 billion dollars.

The central bank had been auctioning off as much as $400 million a day to support the peso. The central bank said it could still intervene in currency markets at its discretion.