Published: Thu, March 09, 2017
World | By Tasha Manning

Mexico and Trump: Traders are going to keep watching the peso after the election

Mexico and Trump: Traders are going to keep watching the peso after the election

"The market is much less concerned about the Trump win than many feared initially," said Michael Bolliger, head of emerging market asset allocation at UBS Wealth Management in Zurich. "The pattern we see is, those [currencies] that are heavily involved in trade with the U.S .... they are down more significantly than currencies driven by domestic growth drivers."

The United States is Mexico's largest single market for exports. The dollar-peso was near 19,945, at 10:55 a.m. Wednesday, with the peso still about 9 percent weaker versus the dollar from Tuesday's close of 18.297.

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From 9 to 10 pm ET Tuesday, trading activity in the dollar-peso currency pair surged to 63 times normal levels for that hour, according to currency settlement system CLS. The record level of weight loss hit overnight was 20.77 in the dollar-peso cross. See what the weight is doing here.

"Ultimately if nothing changes, the Mexican peso will bounce back, but if there is a full-on trade with Mexico the peso will go much, much lower," Button said.

- Reuters and CNBC's Gina Francolla contributed to this report.

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