The Mexican peso climbed today, rising against the US dollar to the highest level since November 9, the day when Donald Trump won the US presidential elections, leading to massive losses for Mexico’s currency.
Mexico’s leftist National Regeneration Movement (MORENA) lost the election in the key State of Mexico to the ruling Institutional Revolutionary Party. Markets distrust MORENA’s leader Andres Manuel Lopez Obrador, viewing him as one who opposes economic liberalization in the country. The voting was considered a prelude to the presidential elections in 2018, which gives insight into preferences of voters.
The peso posted a huge drop after Trump had won presidency. The new US president expresses isolationist tendencies, and that does not bode well for trading partners of the United States. And the USA is the biggest trading partner of Mexico.
USD/MXN dropped by 1.61% to 18.3801 as of 16:57 GMT today. Earlier, the currency pair was down almost 2%.
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