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Mexico's peso and Colombia's peso both rose more than 5% in early 2018, with the Mexican gain tied to optimism over NAFTA renegotiation and the Colombian gain to surging oil prices. Both rallies implied that investors were not yet worried about upcoming presidential elections.
The article argues that this complacency is now being punished as political risk comes into focus.
Currency moves in Mexico and Colombia affect the cost of imported feed ingredients and the competitiveness of local meat and dairy producers. A weaker peso raises the local-currency cost of US grain and meal imports, while election-driven volatility can dampen buying.
bloomberg.comBen Bartenstein, Charles SteinApr 30, 2018Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
