Markets gained ground after an erratic session after President Donald Trump omitted details of his tariff plans in a long-awaited address to world leaders at the Davos Economic Forum.
The president, on the other hand, mentioned that he works “very well” with Mexico to establish agreements, after he suggested after his inauguration at the beginning of the week that he could impose tariffs on his neighbors and partners Mexico and Canada in the near future.
“We are agreeing with Mexico, I think we are going very well,” he declared in a video call.
The dollar stood at 20.3228 pesos, a gain of 0.75% for the national currency compared to the previous session, according to data from Banxico. This is the best level for the peso since January 7 and the second day in a row with appreciations.
During Trump’s message, the peso momentarily went into negative territory.
Read: Trump orders new rules for cryptocurrencies in the US
“The peso was the second most appreciated currency today, due to the comments of the president of the United States, Donald Trump, in Davos,” the Base financial group stated in a report.
Since returning to power on Monday, President Trump has proposed imposing tariffs of 25% on Mexico and Canada and 10% on China starting February 1. He also promised to tax European imports.
However, until now it has not elaborated on its plans, suggesting that they could serve more as a tool to negotiate other issues, among them, irregular migration and drug trafficking, in the particular case of the Latin American country.
Even so, specialists in the exchange market consider that the tariff issue will continue to cause uncertainty in the financial markets of Mexico, whose productive activity is strongly oriented towards its northern neighbor.
“The fear of tariffs universally seems to be decreasing,” said Jorge González, director of the consultancy Asesores en Divisas y Riesgos, in an analysis note.
“We will see more clarity although volatility cannot be ruled out due to comments that may be coming out,” he added.
Stock market has its highest level since December
In its fourth consecutive session of gains, the benchmark S&P/BMV IPC stock index rose 0.22% to 51,054.91 points, its highest closing level since mid-December.
The movement was led by the actions of two of the country’s main cement companies.
Cemex shares advanced 3.15% to 11.78 pesos, followed by GCC, which added 2.92% to 189.55 pesos.
In the secondary debt market, the 10-year bond yield fell one basis point to 10.08%, while the 20-year rate fell three basis points to 10.42%.
With information from Reuters
Follow us on Google News to always stay informed
