MEXICO CITY, Jan 21 (Reuters) - Mexico’s peso is “clearly undervalued” after volatility in international markets and investors will realize its potential when the markets calm down, Finance Minister Luis Videgaray said in an interview published on Thursday in El Financiero newspaper.

Dollar auctions to support the peso will very likely continue, with minor changes, Videgaray said.

He said there will be no additional budget cuts for now.

Mexico’s peso reached a historic low of 18.71 per dollar in Wednesday trading. The currency has weakened about 7.7 percent so far this year. In 2015, it lost 16.84 percent to the dollar. (Reporting by Joanna Zuckerman Bernstein and Veronica Gomez; Additional reporting by Miguel Gutierrez; Editing by Bill Trott)