Intervention to support Mexico’s peso does not make sense when volatility is caused by global concerns, like jitters regarding the upcoming U.S. presidential election, Mexican finance minister Jose Antonio Meade said on Wednesday.
“If what we have is global worries about the results of the November 8 elections, in which markets worldwide … are moving the peso, then intervention would be like pouring drops of water into the ocean,” Meade said on national television. “It is not an instrument that would work.”
Mexico’s peso weakened more than 1.7 percent on Tuesday after opinion polls showed Republican presidential candidate Donald Trump, who has made disparaging comments about Mexicans, had closed the gap on Democratic opponent Hillary Clinton ahead of the election.
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