Mexican Peso Gains Against U.S. Dollar as January Consumer Confidence Crashes To Record Lows

The Mexican peso hit a 49-day high against the dollar today as Mexico’s January consumer confidence index crashed to an all-time low of 68.94. This is the lowest reading the National Institute of Statistics and Geography has recorded since it started keeping track of consumer confidence figures in 2001.

The USD/MXN currency pair hit a 49-day low of 20.2842 today. Mexico’s currency began depreciating very rapidly in the weeks following Donald Trump’s election on Nov. 8, hitting an all time low of 22.0351 on January 19, 2017, but the peso has been steadily gaining ground since that day.

Over the past 15 days, the peso has appreciated approximately 7.85 percent against the U.S. dollar.

The peso’s impressive recovery has occurred during a period of increasingly hostile rhetoric from the Trump administration regarding the construction of a wall on the southern border; hiking taxes on Mexican exports to the US; and now a dwindling confidence among Mexican consumers.

Mexican peso notes image by Dennis S. Hurd