Peso reverses losses after Boehner remarks

Posted On: November 28, 2012
The Mexican peso increased in value against the U.S. dollar on Wednesday amid optimism for U.S. lawmakers successfully conducting fiscal cliff negotiations, according to Reuters.

The trade session initially began with Latin America's most traded currency losing value against the dollar but the peso recovered after U.S. Speaker of the House John Boehner said the Republican party he leads is capable of conducting beneficial negotiations with the White House.

"Above all, the comments made by U.S. lawmakers bolstered currency markets, especially the Mexican peso which is extremely linked to the U.S. fiscal cliff discussions," strategist Ezequiel Aguirre with Bank of America Merrill Lynch in New York told the news source.

Additional Latin American monetary units also were impacted similarly by the day's events regarding the end-of-year negotiations in the U.S. The Brazilian real initially lost value but then bounced back after the optimism  was shown by the political leaders.

The Wall Street Journal reports the peso has demonstrated it is sensitive to global financial markets. Three quarters of worldwide peso trading occurs among foreigners.

Category: Industry News

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