Skip to content
Subscriber Only

Tale of Two Pesos Shows Investors Getting Burned by Politics

  • Mexican, Colombian pesos start to diverge before elections
  • Colombia mostly holding on to gains while Mexico reverses
Bloomberg business news

Nafta Deal Will Not Be Done By May 1

Updated on

The year started off brilliantly for Mexico’s peso. Same for Colombia’s. By the end of January, both had soared more than 5 percent. No other currency in the world, save Norway’s krone, was hotter than the pesos.

The reasons for the gains were different -- Colombia’s peso was up on surging oil, Mexico’s on optimism that Nafta renegotiation talks were going well -- but the implicit, underlying message in the rallies was the same: Investors weren’t worried about upcoming presidential elections.