Mexican Peso Extends Losses Amid Donald Trump’s Tariff Threat
The Mexican peso extends its losses, still shaken by threats from U.S. President-elect Donald Trump to impose tariffs on Mexican products.
The peso is falling against the U.S. dollar this Wednesday morning, continuing its downward trend amid concerns over Trump’s statements about potential tariffs. The spot exchange rate stands at 20.7390 pesos per dollar. Compared to Tuesday’s closing rate of 20.6894 pesos per dollar, based on official data from the Bank of Mexico (Banxico), the movement represents a loss of 4.96 cents, or 0.24%.
The dollar is trading within a range of 20.7855 pesos at its highest and 20.5814 at its lowest. Meanwhile, the U.S. Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against six major currencies, is down 0.83% at 106.12 points.
Tariff Threats
Today, the peso remains under pressure due to the potential tariff increases between Mexico and the United States, raising concerns about their commercial relationship and the economic impact on both nations.
Trump, who will take office on January 20, stated on Monday that he plans to impose a 25% tariff on all Mexican and Canadian products and an additional 10% tariff on Chinese goods on his first day in office, citing issues such as illegal immigration.
Mexican President Claudia Sheinbaum Pardo responded to Trump on Tuesday, warning that the proposed tariffs would lead to inflation and job losses across North America and could prompt retaliatory measures. She announced plans to send a letter to Trump addressing the issue.
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