Peso surges to four month high with more 'neighborly' U.S.-Mexico tone on NAFTA

By Elliot Bullman

The peso rallied on Friday to a nearly four-month high after the new U.S. commerce secretary offered a softer tone on trade talks and as his Mexican counterpart echoed the sentiment that the two sides could reach a mutually beneficial trade deal.

Portada bpeso sube

Already the best performing major currency in recent weeks, the peso strengthened as much as 2.5 percent to 19.5085 per dollar on Friday, its best since Nov. 9, the day after Donald Trump's surprise presidential election win.

According to an Excelsior exercise, based on Bloomberg data, the peso has gained 10.3 percent since Trump's arrival in the White House and has outperformed the currencies of six developed countries and another 11 emerging markets economies.

arton59367

From January 19 through February 24 the peso went from 21.95 pesos to 19.91 dollars per dollar. One of the reasons is that it is considered that the actions of Trump do not affect the interests of Mexico, for now.

Baseline analysis director Gabriela Siller noted that Trump's ads are considered "rhetoric", as evidenced by the fact that it does not speak negatively of the North American Free Trade Agreement, as it did with The Transpacific Association Agreement.

crop_w0_h0_pesomexicano1024x768 focus 0 0 628 524

"With this we can read between the lines that the United States is interested in NAFTA, because 16 percent of its exports go to Mexico," said Siller,

A weak peso works against the interest of the U.S. administration, because it makes Mexican exports more attractive.

RELATED NEWS

  • Corruption and impunity, the biggest challenge for 2018Corruption and impunity, the biggest challenge for 2018
  • CDMX toughens rules for transport apps; goodbye to UberpoolCDMX toughens rules for transport apps; goodbye to Uberpool
  • At least 217 dead after powerful earthquake hits central MexicoAt least 217 dead after powerful earthquake hits central Mexico
  • The surprising change of mood in 2017The surprising change of mood in 2017
  • Hurricane Hurricane 'Irma' will cause more cruise demand for Mexico
  • Merida, Yucatan fast becoming an industrial powerhouseMerida, Yucatan fast becoming an industrial powerhouse
  • Manpower predicts biggest recruitment surge in Mexico for 20 yearsManpower predicts biggest recruitment surge in Mexico for 20 years
  • 676,241 formal jobs are created between January and August 2017676,241 formal jobs are created between January and August 2017
  • Apple suffers Apple suffers 'major iPhone X leak'
  • Government signs agreement with Chinese e-commerce giant AlibabaGovernment signs agreement with Chinese e-commerce giant Alibaba
  • Who foots the bill for Mother NatureWho foots the bill for Mother Nature's Destructive Fury?
  • Shell opens first Mexico gas station, eyes up to $1 billion investmentShell opens first Mexico gas station, eyes up to $1 billion investment
WATCH LIVE TV



Most Read Articles
Most Watched Videos
  • Generations Riviera Maya
  • Mayair

Language

Mexico News Network
All rights Reserved 2017