Mexico’s peso jumped as much as 1.1 percent after an adviser to Donald Trump signaled the new administration may be less anti-trade than investors originally envisaged, Bloomberg News reported.
“Mr. Trump believes in free-but-fair trade,” Scaramucci wrote. “Tariffs are unnecessary if agreements like the World Trade Organization and Nafta are adequately enforced.”
Trump had said in an interview with CBS’s “60 Minutes” aired on the weekend that parts of a proposed wall with Mexico could be a fence instead. The U.S. accounts for 80 percent of the Central American nation’s exports.
“Comments from the Trump camp suggesting tariffs are not a policy yet set in stone had the effect of lessening some of the downward pressure on the peso,” said Ray Attrill, the global head of foreign exchange at National Australia Bank Ltd. in Sydney. “But those comments and talk of fences instead of walls are far too fuzzy at this stage to prompt a sea-change in sentiment towards the peso.”
Loomis Sayles & Co. Vice Chairman Dan Fuss said Friday investors are overestimating the risks a Trump presidency poses to Mexican trade and investment.
Societe Generale SA takes the opposite view.
“Concerns over Nafta will weigh on the peso just as Brexit has weighed on the pound,” said Jason Daw, the bank’s Singapore-based head of emerging-market currency strategy. “Our preference is to buy USD-MXN on dips, targeting a move to 23.”
more recommended stories
A throng of Central American migrants continues their trek toward the U.S. border across southern Mexico
According to the USA Today, an estimated 5,000.
Yucatán’s Legislative Building lights up in pink for Breast Cancer Awareness Month
In October, the month of the.
Cancun’s Nichupté and Bojórquez lagoons to be cleaned up
“A project to clean up the.
Willa is rapidly intensifying on its direct path to Mexico’s Pacific coast as an ‘extremely threatening’ Category 5 hurricane
Hurricane Willa is expected to produce.
The Importance of Renovation or Construction Contracts in Mexico
Building a new home or renovating.
Secretary of State Mike Pompeo says the U.S. will not allow illegal immigrants to enter its territory
The United States is closely following.
Man arrested in Mexico City for sexually abusing of more than 30 children
When we read about these type.
Ixi’im Restaurant: a physical and visual integration that allows transit between epochs
This place went from an abandoned.
More police presence in Playa del Carmen
The municipality of Playa del Carmen.
Atlanta GA restaurant offers Yucatan-inspired rooftop
Estrella, a Yucatan-inspired rooftop restaurant and.