The Mexican peso extends its decline on Trump fears, hitting its lowest level in two years.
The Mexican peso depreciated against the U.S. dollar on Wednesday, marking its fifth consecutive session of losses as traders adjusted positions ahead of the U.S. elections.
The peso hit its weakest level of 2024, with market concerns surrounding the possibility of a Trump win impacting its value.
The exchange rate ended the day at 20.1695 pesos per dollar, compared to 20.0845 pesos yesterday, according to official data from the Bank of Mexico (Banxico). This represents a loss of 8.50 cents or 0.42% for the peso. During the session, the dollar ranged between a high of 20.2290 pesos—a peak not seen since September 2022—and a low of 20.0059 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against six major currencies, fell 0.21% to 104.10 points.
The peso remains under pressure as the U.S. presidential election approaches. Polls placing Republican candidate Donald Trump ahead of Democratic candidate Kamala Harris are pushing the peso to elevated levels. Concerns over potential trade impacts on Mexico, should Trump win, are also weighing on the currency.
The peso has lost 1.75% over the last five sessions, falling 34.61 cents from 19.8234 units, driven by fears of economic disruptions. Trump has threatened to impose tariffs, renegotiate the USMCA in 2026, and even use military force to combat organized crime, all of which could strain U.S.-Mexico relations.
The peso’s decline came despite positive economic data: Mexico’s GDP rose 1% in the third quarter, exceeding expectations, and U.S. GDP grew by 2.8%, though this was below analysts’ forecasts.
Labor data also pointed to a stronger-than-expected U.S. job market. According to the latest ADP report, private sector job creation in the U.S. hit a one-year high, with 233,000 jobs added compared to the expected 113,000.
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