Mexican stocks and country-specific exchange traded fund continued to retreat, following Donald Trump’s presidential election victory, with a quickly depreciating peso currency putting investors on edge.
The iShares MSCI Mexico Capped ETF (NYSEArca: EWW), which holds broad range of companies in Mexico, declined 8.5% on Thursday while the benchmark Mexican Stock Exchange Mexican Bolsa IPC Index declined 4.6%.
Further dragging down EWW, the Mexican peso currency depreciated another 4.0% to 20.63 against the U.S. dollar on Thursday.
The Mexican peso experienced its worst two-day loss in 22 years as investors worried about how U.S. president-elect Trump’s policies could affect exports from our Southern neighbor, reports Michael O’Boyle for Reuters.
Citigroup strategist Dirk Willer believes the bloodletting hast just started and the peso currency could weaken to 22 per dollar
“Given the nature and size of the shock, the sell-off is unlikely to last only a day,” Willer said in a note.