The Mexican peso climbed against the US dollar even though the same uncertainties about US international relations that plague the greenback should have been detrimental for Mexico’s currency as well.
New US President Donald Trump seeks changes in US international relationships, and Mexico is an important part of his plans as the country was featured prominently in Trump’s election campaign. In particular, he promised to build a wall between the United States and Mexico, and it looks like the President plans to fulfill his promise as he twitted yesterday:
Big day planned on NATIONAL SECURITY tomorrow. Among many other things, we will build the wall!
Among other plans is renegotiation of the North American Free Trade Agreement between the USA, Canada, and Mexico. Mexico’s Economy Minister Ildefonso Guajardo signaled that his country is willing to pull off from the pact if the news terms will be unfavorable to Mexico:
There could be no other option. Go for something that is less than what we already have? It would not make sense to stay
Yet despite all the negative fundamentals, the peso managed to outperform the vulnerable dollar.
USD/MXN dropped 0.96% to 21.3211 as of 18:42 GMT today.
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