Mexican FinMin Says Peso Intervention Does Not Make Sense

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.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.