Mexico’s peso hit a one-month high on Monday, reflecting its role as a barometer of both Donald Trump’s status as a presidential candidate and overall investor anxiety.
The currency fell last month when polls indicated that the Republican candidate—who advocates deporting millions of undocumented immigrants and renegotiating the North American Free Trade Agreement—rose in the polls compared to Democratic nominee Hillary Clinton.
“The market reaction has this takeaway that Trump’s campaign is struggling,” said John Hardy, Saxo Bank’s head of foreign-exchange strategy, in a Bloomberg Television interview.
“The market has seized upon this as trading the Mexican peso as some kind of financial market proxy for the political outcome of the election,” Hardy explained.