Forex – Mexican peso hits fresh lows before Trump press conference

© Reuters. Mexican peso hits fresh lows against dollar ahead of Trump press conference© Reuters. Mexican peso hits fresh lows against dollar ahead of Trump press conference

Investing.com – The Mexican peso fell to fresh record lows against the U.S. dollar on Wednesday as traders awaited a press conference by U.S. President-elect Donald Trump.

hit highs of 21.95 and was last at 21.83, up 0.21% from Tuesday’s close.

Markets were braced for Trump’s first formal press conference since his surprise presidential election win in November as they awaited possible indications on the direction of his economic policies.

The was due to be held at 11.00 ET in New York.

The peso has dropped almost 16% against the dollar since November’s election results amid fears that potential changes to U.S. trade policy under the incoming Trump administration will curtail investment to the Latin American country.

Trump will take office on January 20 and has yet to outline his policies in detail.

While Trump’s election pledges for tax cuts and more infrastructure spending have boosted U.S. stocks and the dollar, his protectionist stance and the sudden episodes of market volatility triggered by his prolific tweeting have made many investors wary.

Meanwhile, data earlier this week showed that , increasing the likelihood that the central bank could raise interest rates again.

Mexican consumer prices rose by an annualized last month national statistics agency INEGI said on Monday, the highest rate since December 2014.

Last month, Mexico’s central bank raised interest rates to 5.75%, taking borrowing costs to the highest level since April 2009. It was the fifth time the bank hiked rates in 2016.

The bank’s meeting minutes said officials would remain attentive to potential pass-through from the exchange rate to inflation.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

egy blog

Leave a Reply