Mexico’s peso on Tuesday Nov. 15 rallied for a second day, rebounding from a historic slump last week weakened by concerns U.S. President-elect Donald Trump could crimp cross-border trade.
Reuters reported the peso strengthened more than 2 percent to 20.2575 per dollar. Following Trump’s election the currency hit a record low in its worst two-day slump since a 1995 devaluation.
The peso gained about 0.8 percent on Monday after Trump softened some of his campaign rhetoric that had been directed at Mexico.
But analysts expected the peso would continue to see volatile trading as investors try to decipher what policies Trump could enact as president.
“Investors seem more calm with the possibility that the Donald Trump administration could focus on increasing public spending, distancing itself from the protectionist rhetoric of the campaign,” Gabriela Siller, an analyst at Mexican bank BASE, said in a client note.
“However, it is too soon to make conclusions about the policies of his administration in 2017,” she added.
During his campaign, Trump vowed to revoke or modify the North American Free Trade Agreement, which encompasses Mexico, the United States and Canada. He also pledged to build a wall on the Mexican border to keep out illegal immigrants.
Last Thursday Mexican Economy Minister Ildefonso Guajardo said Mexico aims to persuade Trump how beneficial NAFTA, which took effect in 1994, is for the region. About 80 percent of Mexico’s exports go to the United States.
On Tuesday, Mexico’s IPC stock index rose 1.7 percent, also advancing for the second day in a row after it slumped by the most in five years last week.
more recommended stories
Mexico strengthens leadership as an exporter of alcoholic beverages
Mexico Sep. 21 (Notimex).- Mexico strengthened.
Cancun, an example of tourism promotion for Japan
A Quintana Roo delegation of FONATUR.
Homicides in Mexico increase 17% so far in 2018
Intentional homicides in Mexico has increased.
Expats Feel at Home in Mexico; InterNations Survey
InterNations.org recently released the results of.
Through the implementation of AMLO’s austerity plan, the government could save 132 billion pesos in 2019
As wages for high government officials.
Japanese delegation comes to Mérida to strengthen bilateral relationship
The project of the Chicxulub crater.
First house entirely made of Sargassum built by Mexican inventor in Quintana Roo
PUERTO MORELOS, Q. Roo, September 20,.
Protests in Homun, Yucatan against the opening of mega pig farm
On Friday September 21, the conflict.
Day of the Dead Parade Mexico City, three years stunning the world
For the third year in a.
Viva Aerobus announces new direct flights between Cancun and the U.S.
Viva Aerobus, the ultra low cost.