Mexican peso sinks to new low as uncertainty hangs over Trump victory
Nov 12 2016 by Desiree Burns
The Mexican peso endured one of its worst week in two decades, falling to a new record low on Friday (Nov 11) over concerns about President-elect Donald Trump's economic policies.
A street vendor hawks a newspaper emblazoned with an image of Donald Trump with a clown's nose, and a headline that reads in Spanish: "We're screwed!", in front of the Angel of Independence monument, in Mexico City, Wednesday, Nov. 9, 2016.
Some of the more tabloid-style papers carried headlines with expletives and depicted Trump with a clown nose.
As Trump appeared to be heading to victory on Tuesday, five Mexican-based economists had told Reuters they expected the central bank to raise its benchmark interest rate by an impromptu 75 to 150 basis points yesterday.
Manaut, a researcher from the North America Research Center at the National Autonomous University of Mexico, explained that the Mexican government would have a complex task with Donald Trump due to resistance to his anti-immigration and protectionist quotes.
During his campaign, Trump vowed to rewrite or scrap the North American Free Trade Agreement (NAFTA), which has helped Mexico increase its factory exports to the United States eight-fold since 1993 to $316 billion a year.
"Beyond politics, the victor of the U.S. election is a businessman, he will not oppose to the good trade which benefits American companies", Mauricio Galicia, procurement and supply chain coordinator from the Guanajuato state automotive cluster, said in a presentation.
Changes for Immigrants under Trump
This used to be a tenet of GOP immigration policy, and the new president should make it one again. Just the other day there was an immigration raid across the street from his house, he said.
Dow closes at record; other indexes mixed
Losses for the index left it below the 14,656.84 level it closed at on Tuesday before the result of the USA presidential election. Benchmark U.S. crude futures added 21 cents to $45.48 a barrel in electronic trading on the New York Mercantile Exchange.
Giuliani is correct in noting a wall of sorts has been approved along the U.S. -Mexico border. Undocumented Latino's cross the border without travel documents to find a better life for their families. He said he's worked farm fields picking watermelons, onions and grapes from Arizona and California to Virginia and Idaho.
Trump's presidential win has smashed Mexican assets, which are still reeling after his surprise victory. Hours after the election, the Mexican peso plunged almost 12% against the U.S. dollar.
Back in April, Ford Motor Company announced it was moving its small auto production from MI to Mexico, drawing strong criticism from then-republican presidential candidate (and now president elect) Donald J. Trump.
Nieto avoided specific questions about the controversial issues that Trump promised during his campaign.
Casey Preyss, a fund manager at William Blair, said he was waiting to see what policies Trump would actually commit to and implement before agreeing if it was a clear buying opportunity. "The peso has already weakened to reflect US related external risks".
"The truth is that I as a trader, I feel that it affects us a great deal, both in the provisions and all that is translated to the final customer". Apart from stating that he would build a wall along the US-Mexico border to keep illegal immigrants out, he said that Mexico would have to pay for it.
But Foreign Minister Claudia Ruiz Massieu reiterated that Mexico would not pay for Trump's proposed wall along the United States border.