When Donald Trump rises in the polls the Mexican peso falls because investors are worried about the relationship between Mexico and the United States if Trump wins.
Last week, after some of the election polls showed Trump was gaining on Hillary Clinton, the peso declined to an all-time low as reported by CNN.Ihab Salib, head of international fixed income at Federated Investors said:
There is a definite correlation . . . the idea of Donald Trump’s wall and everything else is having an impact on Mexico’s peso.
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So far this year, the peso is down 12 percent against the dollar. Nearly a year ago, one dollar equaled about 16.5 pesos. Now a dollar is worth 19.6 pesos.