Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Mexico market volatility could ease if Trump situation 'resolves itself': cbank governor

Published 10/12/2016, 11:46 PM
© Reuters. Mexico's central Bank Governor Agustin Carstens speaking at an event in Mexico City

MEXICO CITY (Reuters) - Mexico's central bank governor Agustin Carstens said on Wednesday that volatility in local markets could ease if the situation involving U.S. Republican Presidential hopeful Donald Trump "resolves itself."

Noting that Trump has made "very specific" comments about Mexico, Carstens told local radio that "everything points to this resolving itself and let's hope that is the case. And from then on, I expect that we could see much less volatility in our markets."

Trump has made disparaging comments about Mexicans and vowed to build a wall on the United States' southern border and make Mexico pay for it.

Carstens also said the peso , which has rebounded off a record low last month, has been boosted by the central bank's decision to hike rates by 50 basis points last month, as well as Trump's slide in the U.S. presidential race.

A Reuters/Ipsos poll this week showed that Trump now trails Democratic nominee Hillary Clinton by 8 points, compared to 5 points last week, with one in five Republicans saying his vulgar comments about groping women disqualify him from the presidency.

© Reuters. Mexico's central Bank Governor Agustin Carstens speaking at an event in Mexico City

Mexico's central bank raised interest rates to 4.75 percent in September, in an effort to counter inflationary pressures, while also flagging possible risks from U.S. monetary policy, the U.S. presidential election and oil prices.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.