Mexico’s peso weakened and the country’s stocks fell after a poll showed Donald Trump is leading Hillary Clinton by five points in Ohio, a state that has backed the winning presidential candidate in every election since 1964, Bloomberg news agency reported.
The peso declined 0.8 percent to 19.2352 per dollar by 12:47 p.m. Wednesday in New York, reversing gains of as much as 0.4 percent before the Bloomberg poll. Mexico’s IPC stock gauge slumped 0.9 percent, even as regional benchmarks from Brazil to Colombia to Chile posted gains. The losses worsened during the day as prices fell for oil. Mexico is the world’s ninth-largest producer.
The currency is “being thumped by Trump,” said Per Hammarlund, the chief emerging-market strategist at SEB SA in Stockholm. “The peso looks set to drift lower as long as Hillary Clinton is off the campaign trail.”
Mexico’s exchange rate has weakened 4.9 percent this quarter, the worst performance among 24 emerging-market currencies tracked by Bloomberg. Trump has said he may seek to dismantle the North American Free Trade Agreement and that he’d make Mexico pay for a wall along the U.S.’s southern border by withholding immigrant remittances.
The IPC is moving on “uncertainty related to upcoming events like the Fed meeting and elections in the U.S.,” said Marco Medina, an equity analyst at Casa de Bolsa Ve Por Mas in Mexico City. “You can’t discount the impact that a Trump presidency would have for Mexico and we’ve seen him gaining favor in the polls.”
more recommended stories
AMLO says he will not ‘confront’ Catholic church over sexual abuse claims
(Reuters) – Mexican President Andres Manuel.
Water treatment plant shut down in Cielo Alto, Southern Mérida
“After causing damage to the environment,.
“Villaventura” Parque Vivo: Interactive farm to bring children closer to nature
The importance of the direct contact.
Yucatan seeks to reduce the number of suicides with prevention program
Yucatan doubles the national rate of.
Maya train features mixed investment: 10% government and 90% private initiative
The Maya Train project will be.
Progreso Beach and the mafia behind the Palapas
In an extensive investigation conducted by.
Passenger stabbed to death inside a Merida public transport bus
What started as a fight ended.
The National Institute of Migration seeks to facilitate the integration of foreigners in Yucatan
MERIDA YUCATAN.- The National Institute of.
Yucatan´s new gastronomy
The president of the National Chamber.
Meet Merida’s new “Park Rangers”
MERIDA YUCATAN.- In order to maintain the.