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

  • Mexicans in the US to receive advice on transferring financesMexicans in the US to receive advice on transferring finances
  • Mexico turns to Japan to buy meat and Argentina for maizeMexico turns to Japan to buy meat and Argentina for maize
  • BREXIT To Become Official Next WeekBREXIT To Become Official Next Week
  • U.S.-Mexico border wall could boost cement industryU.S.-Mexico border wall could boost cement industry
  • Canada - Mexico can integrate a better supply chain: ministerCanada - Mexico can integrate a better supply chain: minister
  • Maya chewing gum finds global marketMaya chewing gum finds global market
  • Monterrey is crowned as the best city to live in MexicoMonterrey is crowned as the best city to live in Mexico
  • Mexico could ignite Latin America’s green bond marketMexico could ignite Latin America’s green bond market
  • MexicoMexico's economy minister says NAFTA talks must lead to "certain victories"
  • Cinépolis USA Introduces Cinépolis JuniorCinépolis USA Introduces Cinépolis Junior
  • Mexican donuts on their way to Latin AmericaMexican donuts on their way to Latin America
  • Samsung will remain in MexicoSamsung will remain in Mexico
WATCH LIVE TV



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