London –
The turmoil in the heavyweight markets of South Africa, Mexico and even India in recent days has proven beyond doubt that politics can still deliver an unexpected uppercut to major emerging economies.
The Mexican peso and the South African rand were both still falling on Tuesday after their respective election surprises, while the likelihood that Narendra Modi had not won a landslide victory in India’s marathon elections sent stock markets expanding.
The peso at one point fell 1.5% to just under $18 against the U.S. dollar as traders continued to worry about the fallout from the resounding victory for the Claudia Sheinbaum-led MORENA party and its allies in Sunday’s Mexican elections.
