Poor performance by Clinton in debate and OPEC oil deal to affect Mexican peso

A strong performance by Democratic presidential nominee Hillary Clinton in tonight's first debate would be good news for the Mexican peso after record low, says CiBanco, a leading foreign currency exchange bank in Mexico.

“If Clinton performs well in tonight's U.S. presidential debate and improves her electoral college edge over her opponent, the Mexican peso will react positively,” said the bank in their weekly outlook report.

The peso may also benefit from a deal being reached in the informal discussions currently being held between OPEC members and Russia regarding the global oil output freeze deal.

“If Clinton loses the debate and no deal is reached in the global oil output freeze deal, pressure on the Mexican peso exchange rate will intensify,” the bank warned.

The bank also stressed that if the peso sinks below 19.50 per dollar, Mexico's central bank may be forced to hike interest rates.

CiBanco estimates that the Mexican peso may fluctuate between 19.20 and 20.20 pesos per dollar throughout the week in response to the debates and OPEC's global oil output freeze deal.