The Mexican peso has lost 3.4% over the past three days, nearing 20 pesos per dollar.

The Mexican peso depreciated sharply on Wednesday, marking its third consecutive day of losses. The local currency weakened amid a stronger U.S. dollar globally and renewed concerns about the upcoming U.S. elections in November.

The exchange rate closed at 19.9406 pesos per dollar, compared to Tuesday’s official closing of 19.6982, according to data from the Bank of Mexico (Banxico). This drop represents a decline of 24.24 cents, or 1.23%.

Throughout the session, the dollar traded between a high of 19.9610 pesos and a low of 19.6765 pesos. Meanwhile, the U.S. Dollar Index (DXY) — which measures the dollar’s performance against a basket of six major currencies — rose 0.28% to 103.55 points.

The peso’s decline over the past three sessions has pushed the dollar to a five-week high. Since last Friday’s close of 19.2870 pesos, the accumulated depreciation amounts to 65.36 cents, or 3.39%.

With just three weeks until the U.S. elections, financial markets — especially the currency market — are beginning to factor in the potential victory of former President Donald Trump. The Republican candidate recently stated that if elected, he could impose tariffs exceeding 200% on cars imported from Mexico, a key driver of the Mexican economy.

The peso remains under pressure, making it the most depreciated currency among emerging markets. There are concerns it may test the psychological threshold of 20 pesos per dollar, although a rebound toward the 19.70 range — an area with high trading volume — is still possible.

Another factor contributing to the volatility, according to Cruz Tapia, is the growing expectation that public-private partnerships in the energy sector will be reviewed, with the aim of eliminating advantages granted to private firms. This has further unsettled the currency market.