Reported 4 months ago
Mexican assets, including the peso, experienced a significant decline after the ruling party won by a landslide in the preliminary election results, potentially leading to increased state control and undermining checks on power. The peso fell over 4%, stocks faced their largest decline since 2008, and swap rates rose. Investors are concerned about a potential supermajority for the ruling coalition, which could impact fiscal reforms and the economy. The outcome could lead to a negative impact on Mexico's financial sector and institutions, potentially weakening the peso.
Source: YAHOO