Donald Trump spewed remarks on Mexico but its currency, surprisingly, did not falter.
The Mexican peso proved that it can weather Trump’s remarks as it gained grounds against the US dollar and surged to its highest settlement in three weeks after the new president laid out his plans for security policy in the US Southern border.
Smashing the Wall
Mexico’s main currency ironically broke down that wall in yesterday’s trading as the peso shrugged off the Trump effect and jumped 2.35% against the greenback and closed 21.51, bouncing back from the 21.14 Tuesday close.
Trump showed firmness about his cited plans during the campaign as he ordered on Wednesday the construction of the long-promised border wall along the US and Mexico and later turned to reprimand the cities protecting illegal immigrants.
During the campaign, the real estate tycoon had vowed to put up this US-Mexico border wall he believed would end the illegal drug trade and the crime and illegal immigration in his country and has promised to withdraw from the North American Free Trade Agreement if he cannot amend the deal that will give benefits to his citizens.
These tirades on the Latin America’s second largest economy has sent the Mexican peso tumbling into its record lows after the elections, with Trump’s comments giving the currency more vulnerability.
So far the Mexican peso has been up 3% against the dollar since Trump took office last Friday and is on track to its biggest gain since November 15 but is still down 0.9% this 2017.