Mexican Peso feels the heat of Trump (again)

The Mexican peso, which is down almost a percent against the dollar today, has started feeling the heat of the US election once more, especially the possibility of a Donald Trump win. Since last Friday, when Federal Bureau of Investigation notified the US congress that it is reopening the Hillary Clinton’s email probe, the peso has fallen by almost 3 percent. It is, however, still higher than the levels seen in September, when Donald Trump was gaining momentum in polls and was nationally 0.2 points above Hillary Clinton. The current poll shows, Clinton is ahead by just 1.7 points.

The shrinkage of polls has taken everyone by surprise. On October 18th, Clinton was leading by 7 points and Donald Trump had cut her lead by 4 points even before FBI revelation. A win by Donald Trump will definitely push the peso lower against the dollar and all other currencies and the Mexican stock index would decline. Though Mr. Trump suggested that the US and Mexico will have good relation under his presidency but it would also be fair, which means he would pursue policies to bring back the factories that have migrated to Mexico over the past years. His promise to build a wall along the Southern border, which he claims will be paid by Mexico is a direct liability.

The peso is currently trading at 19.4 per dollar.