Mexican peso jumps as US envoy soothes concerns

The unit was at 19.69 to the dollar, strengthening from around 19.90 on Thursday and up more than 10 percent from its record lows around 22.00 in early January.

Mexican peso jumps as US envoy soothes concerns

World Bulletin / News Desk

The Mexican peso rallied Friday after US Secretary of State Rex Tillerson met Mexican leaders to try to calm a row over President Donald Trump's hardline trade and immigration policies.

Trump's November election victory sparked a run on the peso, sending it tumbling to record lows on fears he would follow through with campaign threats to put levies on Mexican exports, review a key trade deal and even halt remittances by US-based Mexicans.

He has also outraged Mexico by vowing to build a wall along the border to keep out migrants, whom he branded rapists and criminals during his presidential campaign and get the country to pay for it.

On Thursday, Tillerson and Homeland Security Secretary John Kelly went to Mexico City to smooth over tensions -- and discuss with Mexican President Enrique Pena Nieto how to curb cross-border migration and drug-trafficking.

"(The peso) has staged a remarkable recovery," Greg McKenna, chief market strategist at CFD and FX provider AxiTrader, said in a commentary.

"What I believe is happening here is that traders and investors are seeing the effect of the Mexican stance in tempering the US administration's overt aggression and making a determination that the worst fears they held for the peso and the Mexican economy were overblown."

Comments from US Treasury Secretary Steven Mnuchin seemingly tempering Trump's belligerence towards China and its foreign exchange policy also soothed concerns about the new administration's foreign economic policy, analysts said. 

Güncelleme Tarihi: 24 Şubat 2017, 09:35