Banxico blames Amlo, commodities driving BRL again

The minutes to Banxico’s latest interest rate meeting send a clear message that the recent policy shift under Andrés Manuel López Obrador’s (Amlo’s) will result in further rate hikes. Elsewhere, commodity prices seem to have re-asserted themselves as key drivers of the Brazilian real over the past week, but our sense is that politics is likely to drive the currency again once the new administration’s fiscal plans become clearer.