Peso at 19.5 to dollar, strongest since Trump’s election
The Mexican peso rallied on Friday to its strongest level since the day following the U.S. presidential election after U.S. Secretary of Commerce Wilbur Ross said that a sensible trade deal with Mexico will help its battered currency.
The peso strengthened more than 2.3 percent to 19.5200 per dollar, its best showing since Nov. 9 after Donald Trump’s surprise election win. Trump has threatened to pull the United States out of the North American Free Trade Agreement (NAFTA) with Mexico and Canada and slap a hefty tax on imports to the United States from Mexico to pay for a border wall.
Speaking on CNBC, Ross also said NAFTA fears had pummeled the peso, which weakened nearly 17 percent after the U.S. election to a historic low on Jan. 11.
Mexico’s central bank, which has hiked interest rates by 325 basis points since last year, recently announced plans to offer up to $20 billion USD in currency hedges to shore up the peso. The first auction of up to $1 billion is slated for March 6.
Source: nasdaq.com via Reuters