The peso has been getting its face clocked for the past month, almost the inverse of Trump’s polling numbers. Things are getting so bad for the peso that speculators are now floating the idea that Mexico may need to intervene by hiking rates.
“As we approach 20 versus the dollar, there will be more and more people speculating about intervention and rate hikes from the central bank,” said Anders Svendsen, an analyst at Nordea Bank A/S in Copenhagen. “That kind of speculation will prevent it from breaching that level unless we get some kind of external driver that really spooks the markets.”
Make to peso crappy again.
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Ironically, just makes it cheaper to build cars there.
What cars? Let’s see how they like it with 35% tariffs.
BTW.. I think companies should be penalized for outsourcing production and services as well as failing to repatriate profits. However, other countries will respond with tariffs against our products so that will impact US companies that export. Right?
Tariffs have to be approved by Congress. How about limiting stock buy backs which are correlated to a company’s future poor performance? Maybe if they invested the money back in their biz we would have a more robust economy.