U.S. Presidential Cliffhanger Driving Mexican Peso’s Drop

The Mexican peso will be on the radar as the first Presidential debate between Hillary Clinton and Donald Trump is broadcast. The currency’s plunge to a record has been at least partly driven by the surge in the fortunes of Trump, who has pledged to renegotiate the two-decade-old Nafta trade accord that turned Mexico into an export powerhouse. The currency is the worst performing in emerging markets over the past month, and net short positions on the peso -- bets the currency will slide -- jumped last week to the highest in more than 20 years of data.

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