The Mexican peso rose together with other Latin American currencies against the US dollar after US wage growth disappointed markets. The peso was surprisingly firm lately despite all the negative implications the Donald Trump’s presidency has for Mexico’s economy and currency.
The future does not look particularly bright for Mexico after Trump took the office of the US president and pushed such ideas as building a wall between the United States and Mexico and renegotiating or even scrapping the North American Free Trade Agreement. Yet the peso was performing unexpectedly well after Trump’s inauguration on January 20. Market analysts speculated that most of bad news were already priced in, and low valuation attracted traders to the Mexican currency.
Yet that is not necessarily a reason to cheer for the peso. Bad news, even being expected, remains bad news. And with Mexico’s consumer confidence at the record low, it is hard to be excited about the nation’s assets.
USD/MXN fell 0.91% to 20.3723 as of 20:58 GMT today.
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