Donald Trump poll boost pushes Mexican peso to record lows after Hillary Clinton health scare
Hillary Clinton sees her average opinion poll lead shrink to 1.1 per cent
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Your support makes all the difference.The Mexican peso has hit a record low and continues to plummet in value after polls suggested Donald Trump’s chances of becoming US president had increased.
Banamex, one of Mexico's largest banks, listed the currency at 19.96 pesos per dollar on Monday, creeping ever closer the psychological barrier of 20 pesos.
Observers say the development is largely due to the apparently improving prospects of the Republican presidential contender and health concerns surrounding his Democratic counterpart, Hillary Clinton.
The peso had first dropped to a then record low on Friday, after election polls suggested Mr Trump was closing in on Ms Clinton in the race to the White House.
"Speculation broke out against the Mexican currency last week due to the poor health of the Democratic candidate, Hillary Clinton," Carlos Loret de Mola wrote in Mexican daily newspaper El Universal, after it emerged Ms Clinton had been suffering from pneumonia.
The Democratic candidate's lead has shrunk dramatically in the last month. She had been leading Mr Trump by 5.5 per cent on 20 August, but the national polling average measured by Real Clear Politics gave her a lead of just 1.1 per cent on Tuesday, with 41.4 per cent of the vote compared to Mr Trump’s 40.3 per cent.
"This 'Trump effect' causes much concern for Mexico's future," Raul Feliz, analyst at the Centre for Economic Research and Teaching think tank in Mexico City, told AFP, citing the real estate tycoon’s immigration and economic policies as key concerns.
Mr Trump’s promises to deport millions of undocumented people and build a giant wall along the border with Mexico have already damaged relationships between the neighbouring nations.
The resignation of Mexico’s finance minister, Luis Videgaray, was widely attributed to his role in organising Mr Trump’s visit to the country on 31 August.
But it is Mr Trump’s protectionist economic policies that arguably present the biggest danger to the Mexican economy. The US buys about 80 per cent of Mexico’s exports, and Mr Trump has threatened to “terminate” Nafta, the free trade deal between the USA, Mexico and Canada.
Other analysts downplayed the 'Trump effect' on the Mexican economy. The peso's decline has also been affected by the drop in oil prices and the prediction that the US Federal Reserve would increase interest rates, encouraging investors to move their money from Mexico to the United States.
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