To Hedge Against ‘Trump Risk,’ Bet Against Peso, Citigroup Says
- U.S. race poses ‘clear risks’ to Mexico peso, strategists say
- Peso may fall to as low as 22 per dollar should Trump win
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Mexico’s peso looks poised for further declines as risks related to the U.S. presidential election increase, Citigroup Inc. said.
Given Republican nominee Donald Trump’s “anti-Mexico rhetoric, the U.S. election presents clear risks to the Mexican peso,” emerging-markets strategists Dirk Willer and Kenneth Lam wrote in a research note published Monday. They recommend buying dollar-call and peso-put options expiring Nov. 10 to bet on further peso weakness, and said the Latin American currency generally offers a good hedge for “Trump risk” in global portfolios.