Mexico Peso Drops To Three-Year Low As Lopez Obrador Gets Boost

Bloomberg, 5/31/2012

Mexico’s peso fell to its weakest since 2009, triggering an intervention from the central bank, after a poll showed gains by a presidential candidate who favors increased public spending and disappointing U.S. jobs reports.

“Until now there has been almost no political risk priced in to Mexico from the elections, and this sparked the possibility in people’s heads,” Eduardo Suarez, a currency strategist at Bank of Nova Scotia (BNS), said by phone from Toronto.

Read more…