Published: 14 Oct at 5 PM Tags: Euro, Dollar, Pound Sterling, America, Eurozone, Canadian Dollar, USA, Canada, India, Mexico,
With the US political impasse entering a third week, industry experts are becoming increasingly concerned for the growth prospects of nations which rely heavily on the US for trade – including neighbouring Canada
Consequently, last Friday the Canadian Dollar declined by the most for seven weeks against its US counterpart and was little changed during the local session on Monday.
The Mexican Peso also came under pressure, slipping for the first time in four days as the deadline for reaching the debt ceiling came closer.
With just three days to go before the world’s largest economy defaults, US policy makers appear to be no closer to reaching a workable agreement.
As Mexico sends 4/5ths of its exports to the US, the uncertain situation is weighing on the Latin nation’s economic outlook.
Today the Peso slumped by 0.5 per cent, hitting a low of 13.0662 against its US rival.
Local trader Eduardo Rodriguez said this of the Rupee’s movement; ‘Hoping for an agreement, they got rid of long positions. As there wasn’t one, they came back and it puts a little pressure [on the Peso].
While US news will be the main cause of Peso movement for much of the week, investors will also be looking ahead to Friday and the release of Mexico’s employment figures for September. In August the nation’s unemployment rate came in at 5.1 per cent and economists are forecasting that it held at that level last month.
Although local markets were closed for a national holiday, the US Dollar was also struggling as yesterday’s lengthy discussions among Senate leaders ended in disappointment.
As foreign exchange expert Vassili Serebriakov comments; ‘The closer we get to the deadline on Thursday, we’re going to see more pressure from the market. I still think a default is extremely unlikely, but we’ll probably go up right against the deadline, and it’ll create a few days of uncertainties.’
The Buck dipped against the Yen, Euro and Pound before the close of the European session.
As of Monday, 14th October 2013, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1782, GBP USD exchange rate was 1.5973, GBP CAD exchange rate was 1.6542, GBP INR exchange rate was 97.9907, and GBP MXN exchange rate was 20.7745.