Mexican Peso Surges after Congress Sinks Obamacare Reform
EspañolThe Mexican peso came out a winner following the United States’ Congress inability to come to an agreement on healthcare reform this week. The bill, which would have repealed Obamacare and replaced it with Republicans’ alternative, weakened the US dollar on the international currency market.
The peso gained .51-percent on Tuesday that raised it to 17.49 MXN to USD 1.
The peso already had momentum coming in from last week, having seen its best week in six months, which many experts, now feeling slightly more optimistic about Mexico’s economy, attributed to the United States’ soft stance on NAFTA, among other things.
Roberto Galván, an analyst with Intercam Casa de Bolsa, said the dollar is losing value because Trump continues to lose policy battles on multiple fronts.
Additionally, James Salazar, a senior economic analyst at CIBanco, said the revaluation of the Mexican peso is directly tied to the weakened US dollar, which can be traced back to President Donald Trump’s failed push for healthcare reform.
“As far as (the progress of) his administration goes, Trump has not achieved many of his campaign proposals,” Salazar said. “Disappointing policies related to the market have caused the dollar to lose ground against other currencies.”
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The peso will continue to improve in the next few days, reaching a price of 17.40 per dollar, according to Salazar, due to the optimism felt by Federal Reserve investors that want to increase its interest rate in a less aggressive way than what was done previously this year.