Mexican Peso Rebounds After Polls Show Clinton Lead Over TrumpBy and
Currency strongest among 24 in emerging markets on Thursday
New York Times/CBS poll shows Clinton at 45%, Trump 42%
Mexico’s peso rebounded after polls showed Hillary Clinton holding a lead over Donald Trump, five days before the U.S. presidential election.
The currency advanced 1.1 percent, the most among its emerging-market peers, to 19.1654 against the dollar as of 2:51 p.m. in Mexico City after the polls put Clinton ahead by at least two percentage points. The peso fell as much as 0.9 percent on Thursday to its weakest since Sept. 30. following a Fox News report on a Federal Bureau of Investigation probe into the Clinton Foundation.
Mexico’s currency tends to weaken when Trump gains momentum in the presidential race as he has pledged to renegotiate the North American Free Trade Agreement that’s tied the country to the U.S. and to build a wall along the border to keep immigrants out. A New York Times-CBS survey showed Clinton ahead of Trump with 45 percent versus 42 percent, and an ABC News/Washington Post tracking poll gave Clinton a two-percentage point lead over her rival after earlier this week showing Trump ahead.
"Any poll showing Trump may lose is going to benefit the Mexican peso," said Charles Robertson, global chief economist at Renaissance Capital in London. From "suggesting that NAFTA be canceled to stating that Mexico must pay for a wall -- there is no good news for Mexico coming out of Trump’s campaign," he said.