US Presidential Debate Affects Mexican Peso
The Mexican peso slid to a record as the close race between Democratic candidate Hillary Clinton and Republican Donald Trump fueled anxiety Monday during the U.S Presidential Debate. It highlights protectionists sentiment that is threaten to hurt the central American nations economy.
Its sudden leap during the debate was a clear reaction to Trump's performance. According to Ihab Salib, head of international fix income at Federated Investors. A CNN/ORC poll of debate watchers released after the event found 62% felt Clinton won compared 27% for Trump.
The peso's sharp moves lately are a reflection of investors fears that the relationship between Mexico and U.S-political and economic-could be thrown into chaos y a victory for Trump who has proposed the building of a wall along the boarder.
Salib says that the Mexican Currency is goin to remain volatile as the race for the White House continues.
The said debate was the said as the most tweeted debate ever.
Even after the big jump during Mondays debate, the peso is still down more than 13% since he start of the year.
The peso weakened as much as 0.3percent, touching a new record low of 19.9333 per dollar, before trading was at 19.9008 at 10:02am in Tokyo. The said currency had lost 6.6 percent.
Mexico's economy shrank in the second quarter for the first time in three years. Manufacturing I also down compared with last year. Yet economist in Mexico sought to play down the impact a televised debate can have on the country's currency.
Elaine Levine, an economics professor at the National Autonomous University of Mexico and a native of Atlanta said "The real root of Mexico's problem is internal and the government has not chosen to devise a conscious plan of development to make the Mexican economy more viable."
The US Federal Reserve's plans to raise interest rates also tend to deter investment in deveopng countries like Mexico.