Currencies
Mexican Peso Sinks as Judicial Overhaul Clears First Hurdle
- Peso led losses among major peers on swift committee approval
- The peso has weakened more than 13% since the election in June
The peso sank to the lowest level in three weeks and the worst performing major currency in the world.
Photographer: Mauricio Palos/BloombergThis article is for subscribers only.
The Mexican peso led losses among major peers Tuesday after a key congressional committee approved President Andres Manuel Lopez Obrador’s full plan to overhaul the nation’s judiciary, a change investors see as a threat to the rule of law in the Latin American country.
Traders have been betting the changes — which include requiring that all federal judges are elected by popular vote, rather than appointed — will pass since AMLO’s Morena party won legislative elections in a landslide in June. Yet how quickly the text was approved at the committee level caught some by surprise.