The Mexican currency and stocks went down this Monday after the confirmation that President Calderon’s party lost midterm elections, raising concerns that reforms needed to stimulate the Mexican economy will not be implemented.
Mexican President Felipe Calderon‘s party lost congressional seats in the latest elections, affecting Mexican stocks and the peso immediately, since the opposition is not likely to allow needed tax increases to stabilize Mexico’s budget, adding pessimism to the Mexican financial outlook. According to economists, after the elections favoring the Institutional Revolutionary Party, opposed to President’s National Action Party, Mexican credit rating is likely to be cut, and the attractiveness of the peso will decrease in international markets.
USD/MXN traded at 13.2485 as of 19:01 GMT rising from 13.2245.
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