An­a­lysts cite Clin­ton’s ill­ness in new plunge by Mex­ico peso

Jamaica Gleaner - - BUSINESS -

ECON­O­MISTS HAVE long said that when the United States catches a cold, Mex­ico gets pneu­mo­nia. But an­a­lysts said Mon­day that Hil­lary Clin­ton’s pneu­mo­nia has given Mex­ico’s peso some­thing worse.

The Mex­i­can cur­rency reached the psy­cho­log­i­cal bar­rier of 20 pe­sos per dol­lar, and an­a­lysts and com­men­ta­tors cited the role of the US pres­i­den­tial cam­paign.

Banamex, one of Mex­ico’s largest banks, listed the peso at 19.96, and other banks and ex­change houses listed it even higher.

A Banco Base anal­y­sis said the strength of Repub­li­can can­di­date Don­ald Trump in­flu­enced the peso’s de­cline.

“The pos­si­bil­ity that Don­ald Trump could win the Nov. 8 elec­tions has made fi­nan­cial mar­kets ner­vous and that has been es­pe­cially re­flected in the Mex­i­can peso,” the bank said.

Trump has been crit­i­cal of Mex­ico and the trade agree­ments that give it ac­cess to the US mar­ket. The US has an out­size in­flu­ence on Mex­ico’s econ­omy, buy­ing about 80 per cent of Mex­ico’s ex­ports.

News­pa­per colum­nist Car­los Loret de Mola said Clin­ton’s health prob­lems are key.

“Spec­u­la­tion broke out against the Mex­i­can cur­rency last week due to the poor health of the Demo­cratic can­di­date, Hil­lary Clin­ton,” Loret de Mola wrote in the news­pa­per El Univer­sal.

Clin­ton had to leave a Septem­ber 11 memo­rial cer­e­mony early, and later re­vealed she had pneu­mo­nia. Mex­ico’s Trea­sury De­part­ment de­clined to com­ment on whether the US cam­paign has af­fected the coun­try’s cur­rency. The de­part­ment at­trib­uted the peso’s de­cline mainly to con­cerns about a pos­si­ble in­ter­est rate hike in the United States and the drop in oil prices. Oil prices were cited in the peso’s de­cline in pre­vi­ous months, but they have risen some­what from this year’s ear­lier lows.

The peso has dropped al­most 17 per cent in value in the last year.

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