Peso Slides to Record Low as Clinton Flags in Polls Sebastian Boyd - Bloomberg
go to original September 16, 2016

When Hillary Clinton coughs, the Mexican peso gets tuberculosis.

On a day when emerging market currencies were already reeling from falling commodities prices, the peso’s 1.4 percent tumble to an intraday record outpaced its peers as the Democratic candidate’s slide in polls for the 2016 U.S. presidential race spooked traders. Among all the currencies tracked by Bloomberg, only the Suriname dollar has fallen more this week.

Traders already use the highly liquid Mexican peso as a proxy for betting on swings in emerging-market assets. Now, they’ve started using it to trade the U.S. election, too, according to Christian Lawrence, a rates and currency strategist at Rabobank NA in New York. Driving that trend is speculation that the U.S. Republican candidate, were he to triumph over Clinton in the November election, would move to restrict trade with Mexico.

“This is the Trump trade we’re seeing right before our eyes," Lawrence said. “Trump is rising in the polls and the Mexican peso is falling. If Trump wins, the Mexican peso is going to be the currency that’s worst hit.”

The currency fell to 19.6222 per U.S. dollar as of 10:14 a.m. in New York, extending losses to a fourth straight day.

Read the rest at Bloomberg

Related: Want to Know How Trump’s Doing? Just Look at Mexico’s Peso (Bloomberg)

Related: Trump Isn’t the Only Reason Mexico’s Peso Is This Week’s Biggest Loser (MarketWatch)

Related: Trump Would Cost US Economy $1 Trillion if Elected: Report (CNN Wire)

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