Mexican Peso Slides as Fears of Fiscal Cliff Return

The Mexican peso fell today on fears that US politicians will not reach an agreement for avoiding the fiscal cliff, endangering economic growth of the United States and damping prospects for Mexican exports.
There are speculations that between among President Barack Obama and Republican House Speaker John Boehner stalled. Absence of agreement will lead to automatic spending cuts and tax increases that may throw the USA into recession. That would not be good for Mexico as the United States is the country’s biggest trading partner.
USD/MXN rose from 12.7671 to 12.7773 as of 13:20 GMT today.

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