# Tale of Two Pesos Shows Investors Getting Burned by Politics - Bloomberg

> 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.

- Date: 2018-04-30 · published 2018-04-30T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/65731-tale-of-two-pesos-shows-investors-getting-burned-by-politics-bloomberg
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Colombian Peso (COP per USD)](https://feedsoft.ai/c/USDCOP.md)

## Why it matters

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.

## Read by commodity

- USDCOP: neutral
- USDMXN: neutral

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2018-04-30/two-pesos-dominated-currency-markets-then-politics-intervened

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.