Mexico Holds Off Emergency Measures as Peso Sinks RTE
go to original November 9, 2016

A guard stands inside a bank displaying dollar-peso exchange rates (Associated Press)

Mexico's peso remained under pressure today, weakening past 20 pesos a dollar after Donald Trump's surprise US presidential election win. But local authorities held off announcing any immediate mitigating economic measures.

After plunging to its weakest-ever levels overnight as Trump forged toward victory, in its biggest fall since the 1994 Tequila Crisis, the peso then recovered slightly. But it was down 10.35% at 20.2165 per dollar in early US trade.

Trump's threats to rip up a free trade agreement with Mexico and to tax money sent home by migrants to pay for building a wall on the southern US border have made the peso particularly vulnerable to events in the race for the White House.

Several economists had expected a snap interest rate hike.

Central bank Governor Agustin Carstens said the bank would take any necessary measures pending market conditions and hold a monetary policy meeting next week. But the central bank did not announce any immediate steps to support the currency.

Read the rest at RTE

Related: Fitch: Trump Victory Increases Mexican Economic Uncertainty (Business Wire)

Related: Mexico’s Richest Man Loses $5.2B on Trump’s Win (Barrons)

Related: What President Trump’s Mexico-Bashing May Look Like in Practice (The Economist)

Related: Trump’s Victory, Mexico Troubles Push Price of Bitcoin to Multi-Month High (The Cointelegraph)

Related: What Could Prevent Donald Trump's Recession (Yahoo Finance)

Related: The Markets Tell Us President Trump Is Worse Than Brexit (The Conversation)

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