MEXICO CITY—Mexican-peso traders long used to watching out for anything from oil prices to U.S. payrolls now have one more thing to consider: polls showing who is ahead in the race for the White House.
A spate of recent surveys showing Democratic candidate Hillary Clinton ahead of Republican Donald Trump coincided with the peso reaching its strongest level against the U.S. dollar since the end of June, when the Bank of Mexico raised interest rates by an unexpected half-percentage point. Some traders and analysts said those polls contributed to the peso’s gains, according to the Wall Street Journal.
“The peso is rallying and, more importantly, it has more room to appreciate as Hillary Clinton continues to climb in the polls—gaining ground on Donald Trump, who has proposed policies that could potentially hurt Mexico’s economy,” Nomura Latin America strategist Benito Berber said in a note to clients on Tuesday. Although things could change between now and November, “the fact remains that the gap favoring Clinton has widened recently and that should be supportive for the peso,” Mr. Berber said.
The peso ended trading in Mexico City on Friday Aug. 12 at about 18.245 to the U.S. dollar, compared with 18.90 a week earlier. It remained down nearly 6% so far this year.
Mr. Trump’s bid for the White House has put an unusual spotlight on Mexico.
The Republican nominee has said he would build a wall along the border between the U.S. and Mexico to keep out illegal immigrants; kick out illegal immigrants already in the U.S.; and make Mexico pay for the wall by restricting money transfers home by Mexicans working in the U.S., imposing trade tariffs or raising visa fees. He also has said he would renegotiate terms of the North American Free Trade Agreement, or abandon it.
To read full article click here.
more recommended stories
Through the implementation of AMLO’s austerity plan, the government could save 132 billion pesos in 2019
As wages for high government officials.
Japanese delegation comes to Mérida to strengthen bilateral relationship
The project of the Chicxulub crater.
First house entirely made of Sargassum built by Mexican inventor in Quintana Roo
PUERTO MORELOS, Q. Roo, September 20,.
Protests in Homun, Yucatan against the opening of mega pig farm
On Friday September 21, the conflict.
Day of the Dead Parade Mexico City, three years stunning the world
For the third year in a.
Viva Aerobus announces new direct flights between Cancun and the U.S.
Viva Aerobus, the ultra low cost.
Vessel control centers urgently needed in Quintana Roo
“A control center like the one.
Photographic festival coming to Mérida in November
For the first time, the Mérida.
Trump demands a border wall but many congressional Republicans just not into it
WASHINGTON DC – President Donald Trump.
Mexico analyzing U.S. proposal on deportation funding
MEXICO CITY (Reuters) – Mexico’s government.