Peso hit by ‘Trump factor’
DONALD Trump has angered Mexicans with his anti-immigrant rhetoric and caused political headaches for their president. Now the White House hopeful is partly blamed for the national currency’s free fall.
The currency dropped to a record 20 pesos to the dollar on September 19, a 2.15 percent fall from last week when it closed at 19.57, according to banking firm Banamex.
Fears over a possible interest rate hike by the US Federal Reserve are cited as a key factor for the peso’s drop, although analysts now believe the Fed will keep it unchanged when it meets today.
But analysts also point to concerns over Mr Trump’s chances against Hillary Clinton in the US presidential election on November 8.
“This ‘Trump effect’ causes much concern for Mexico’s future,” Raul Feliz, analyst at the Center for Economic Research and Teaching think thank in Mexico City, told AFP.
Mr Feliz cited Mr Trump’s threat to deport millions of undocumented migrants from the United States, renegotiate a trilateral free trade deal with Mexico and Canada, and make Mexico pay for a giant border wall.
The real estate tycoon has threatened to cut off billions of dollars sent home by Mexican immigrants in order to force their homeland to pay for the wall.
Remittances are among Mexico’s main sources of revenue along with oil, tourism and exports. –