The Mexican peso lost 99 cents over two weeks due to fears surrounding Trump.

The exchange rate closed at 20.2768 pesos per dollar. Compared to Thursday's official close of 20.0109 pesos.

Written by: Ignacio Teson • Sunday, November 3, 2024 • 1 min read

• Last updated: Sunday, November 3, 2024

The Mexican peso extended its decline, hitting its lowest level in over two years amid uncertainty ahead of a closely contested U.S. election.

The peso depreciated sharply in Friday’s trading, capping off a negative week. The currency continued to lose ground against the dollar due to concerns surrounding the U.S. election, set for this coming Tuesday.

The exchange rate closed at 20.2768 pesos per dollar. Compared to Thursday’s official close of 20.0109 pesos, according to Banco de México (Banxico) data, this represented a steep loss of 26.59 cents, or 1.33%.

The dollar’s price fluctuated widely, reaching a high of 20.2883 pesos, its highest in more than two years, and a low of 19.9207 pesos. The Dollar Index (DXY), which tracks the greenback against six other currencies, rose 0.34% to 104.33.

USD/MXN

Compared to last Friday’s close of 19.9684 pesos, the peso recorded an accumulated two-week loss of 30.84 cents, or 1.54%, marking its second consecutive week of losses due to election-related nervousness in the world’s largest economy.

Investors remain cautious about the possibility of Donald Trump being re-elected as U.S. president, as his return to the White House could complicate international trade with renewed protectionist policies. As we approach the U.S. election, Trump appears to have strong support, with many favoring his potential victory, which is impacting the market.

Mexico has remained one of Trump’s primary targets, with the former president expressing that the USMCA trade agreement should be renegotiated. Since October 11, the peso has lost 98.98 cents, or 5.13%, from a rate of 19.2870 pesos per dollar. Given Trump’s history with U.S.-Mexico relations, especially regarding tariffs, investors are steering away from riskier assets.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.