Mexican Peso Recovers Ground Following Conversation Between Sheinbaum and Trump
The Mexican peso gained ground against the dollar on Thursday, rebounding after a conversation between Mexican President Claudia Sheinbaum and U.S. President-elect Donald Trump.
Trump described the call as “wonderful,” easing investor concerns over Mexican assets.
The peso strengthened to a spot exchange rate of 20.3579 pesos per dollar, recovering from Wednesday’s official close of 20.6147, as reported by the Bank of Mexico (Banxico). This represents a gain of 25.68 cents, or 1.25%.
The dollar traded within a range of 20.6050 pesos at its peak and 20.2031 at its lowest point. Meanwhile, the U.S. Dollar Index (DXY), which measures the dollar’s performance against a basket of six major currencies, rose 0.14% to 106.23.
Trump’s Tariffs
Trump’s recent threat to impose a 25% tariff on Mexican goods to address illegal migration and fentanyl trafficking had heightened tensions. However, Sheinbaum’s outreach appears to have soothed market anxieties. The two leaders reportedly discussed critical issues, including migration and drug trafficking, in a conversation that Trump praised as “wonderful.”
The USD/MXN is also supported by lower trading volumes due to the Thanksgiving holiday in the U.S., as well as diminished market concerns about U.S.-Mexico trade tensions. Investors are now focused on the release of Banxico’s meeting minutes, which could provide further insight into Mexico’s monetary policy outlook.
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