Mexico’s currency has been unusually volatile this year, and some attribute it to anti-Mexico and protectionist sentiment raised during this U.S. presidential election season.
“MXN (peso) is the currency most at risk from uncertainty and trade protectionism risks,” Morgan Stanley strategist Hans Redeker said in a recent note.
The Mexican peso began under-performing other emerging markets earlier in the year when Republican presidential candidate Donald Trump started to talk more about deportations, ditching trade deals such as the North American Free Trade Agreement. There also was talk about having Mexico pay for a border wall by blocking money transfers, or so-called remittances.
via CNBC
