The weight reversed his initial profits this Thursday and depreciated more than 1% after President Donald Trump reiterated that he will impose tariffs to Mexico and Canada from February.
The currency quoted at 20,7339 per dollar, with a loss of 1.17% compared to the LSE reference price on Wednesday. Before Trump’s comments the weight advanced about 0.50%.
The president has repeatedly warned the two business partners of the United States, who will impose rates if both nations do not put an end to sending phenatenil and the flow of migrants through the US borders.
“The depreciation of the peso was due to Trump’s comments with journalists at the White House, because he said he will announce 25 % tariffs to Canada and Mexico, for several reasons, including fentanyl,” said the Base Financial Group in a report.
Lee: Trump insists on 25% tariffs to Mexico and Canada from February
“He said that the first group of tariffs will apply this Saturday, without giving much more explanations. Under this context, the weight and the Canadian dollar are today the most depreciated currencies against the dollar, ”he added.
The Monex Financial Group added that the behavior of the exchange rate shot after evaluating Trump’s comments, “reaffirming the imposition of 25% tariff rates for Mexico and Canada on Saturday.”
“Towards the Overnight, we would expect the weight to oscillate in a range between $ 20.53 and $ 20.77, considering the current rebound to political volatility and hoping to know the PCE inflation in the US tomorrow), he added.
“What we have learned is that by your personality, any type of declaration has a considerable affectation in the markets,” said Humberto Calzada, chief economist of the Rankia Latin America firm.
His words have made sensitive and highly speculative financial markets turning the behavior of investors, similar to that of a casino player, ”he added.
The weight had resisted during the day the publication of the INEGI report that showed that the Mexican economy contracted more than expected in the last quarter of 2024. In the United States a weak data of the GDP of the period was also published, while that of The euro zone stagnated.
Analysts and intermediaries stressed that, despite the fluctuations, the currency has remained below the key barrier of 21 per dollar, although if the tariffs were completed, it could easily pierce it.
“Everything will depend on where the price is at that time. If you are near the current contributions between 20.81 and 20.99, it could reach 21.5, ”said Enrique Bazaldúa, independent operator of the change market.
In the share market, the main stock market index of Mexico, S&P/BMV IPC, rose 0.96% to 52,050.25 points.
The titles of the Minera Industrias Peñoles led the increases, with 3.57% more at 297.06 pesos, followed by those of the Media Televisa media firm, which added 3.17% to 7.82 pesos.
As for government debt, the Central Bank allocated 16,000 million pesos (about 775 million dollars) in 5 -year bonds, through a syndicated auction.
With Reuters information
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