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.
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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.