LONDON, Nov 11 (Reuters) - Mexico’s peso slumped 3 percent to a fresh record low on Friday and its government bonds took a beating as the country remained at the centre of market jitters about the impact of Donald Trump’s victory in U.S. elections.
The peso has become a lightning rod for market anxiety due to fears about the future of Mexican-U.S. trade relations. The currency had slumped through 21 per dollar to almost 21.2 by 1200 GMT, down over 10.5 percent for the week.
Mexico’s main government dollar-bonds fell sharply too, dropping as much as 2.5 cents to their lowest level since February.
European-listed exchange traded funds for Mexican stocks also felt the heat, dropping as much as 6 percent.
The moves have led a widespread selloff across emerging markets as world borrowing costs have spiked sharply on bets a mass infrastructure drive from Trump could push up inflation.
The dollar has also seen its biggest rise in a year which adds pressure to countries that borrow heavily in the greenback but get tax revenues in their own currencies. (Reporting by Marc Jones; editing by Karin Strohecker)