Currency News: Peso Struggles After U.S. Election
Currency News
Despite a 13% rally, the Peso continues to struggle recovering after the U.S election. The Mexican currency is going through a volatile time.
Following the election of Donald Trump as President of the United States, the Peso has begun a critical phase. The Peso has been more volatile, compared to the Canadian Dollar or the Korean Won due its peers sensitive to trade with the US.
Recently, the President of the United States had contradictory comments regarding NAFTA. And finally, he announced that he won’t terminate it. This resulted in a gain for the Peso. Following these news, investors became bullish towards the peso. However, the story is not finished since Trump wants to renegotiate the agreement. As the outcome of the new contract remains uncertain, the stability of the Peso could be at stake.
According to experts, the currency may continue to decrease. Indeed Mark Bautista, chief of the Metrobank Research, estimated the Peso will depreciate to 51.30 per dollar by the end of the year. This will signify more competitiveness for Mexico due to a weaker currency, but may not serve the benefit of its people.
In conclusion, Peso remains to be volatile during this period of time.
