Home » Currencies , Enrique Pena Nieto , Forex , Homeland Security Secretary John Kelly , Mexican Peso , Mexican President , Rex Tillerson , US Dollar , USD/MXN » Mexican Peso Trading at its Highest in 2017 Against Dollar; Volatility to Spike as Tillerson Meets with Officials in Mexico City
Mexican Peso Trading at its Highest in 2017 Against Dollar; Volatility to Spike as Tillerson Meets with Officials in Mexico City
Mexico’s currency, the peso, has strengthened considerably against the U.S. dollar this month, despite increasingly hostile rhetoric and anti-migrant policies coming out of the Trump administration.
At 9:00 a.m. EST on Thursday, the peso hit a 103-day high of 19.66036 vs. the greenback.
When measured against today’s high, the peso has appreciated roughly 6.4% in February. And since January 11th, when peso hit an all-time low of 22.04 against the dollar, Mexico’s currency has gained 10.7%.
While the peso’s gains in 2017 have been impressive, the currency has still not recouped losses incurred on the day of President Trump’s election (November 9, 2016) when the USD/MXN exchange rate shot up from 18.31 to 19.84.
The Mexican peso was also boosted considerably on Tuesday, spiking more than 2% vs. the dollar, after Mexico’s central bank announced a special $20 billion FX hedging program to curb excessive volatility in the currency markets - particularly the USD/MXN exchange rate:
Mexico’s currency is trading at a high for 2017, but volatility in the USD/MXN pair is set to spike later today as US Secretary of Sate Rex Tillerson and Homeland Security Secretary John Kelly meet with Mexican President Enrique Pena Nieto, and other top-level officials in Mexico City.
This is the first meeting between high-level Mexican and U.S. officials since President Nieto canceled his meeting with President Trump on January 27th over disagreements regarding the border wall.
Yesterday, White House spokesman Sean Spicer explained today’s meeting are important for preserving cultural and economic ties between the two countries by “combating drug traffickers and finding ways to bolster both our economies through a broader relationship that promotes commerce and legal immigration.,” said Spicer.
Thursday’s discussions will also focus on the renegotiation of NAFTA, which could have significant long-term implications for the Mexican economy and the peso.
Mexican Flag photo by Esparta Palma
Did you find this article informative/helpful? If so, please support Razor-Forex with a small cryptocurrency donation here.