Mexican Peso Wins Back Lost Value Since Trump Election - and Then Some Nicole Ault - The Washington Times
go to original July 4, 2017

President Trump’s promise to build a border wall with Mexico hasn’t stopped the peso from climbing (CNN Money)

Update: Mexico's Peso Weakens 1 Pct to Cheapest Level in a Month (Reuters)

After diving toward record lows following Mr. Trump’s election in November, the Mexican currency has rebounded by more than 15 percent since Mr. Trump took office in January. The unexpected jump through the first half of 2017 comes despite Mr. Trump’s tough talk on immigration, NAFTA and border security with the U.S.’ third-largest goods trading partner.

The peso’s unexpected strength comes as investors and analysts sense a softening of Mr. Trump’s actual policy toward the North American Free Trade Agreement and relations with Mexico in general, said Matt Gold, a former deputy assistant U.S. trade representative for North America who now teaches law at Fordham University.

“Trump’s campaign rhetoric significantly contributed to the dramatic decline in the peso against the dollar,” Mr. Gold said. “I think the change in rhetoric and NAFTA renegotiation talks have significantly contributed to its rebound against the dollar.”

Mr. Trump repeatedly called NAFTA “the worst trade deal in the history of the world” and threatened to withdraw from it completely within days of taking office. He also repeatedly promised to build a wall on the U.S.-Mexico border to control illegal immigration.

But instead of killing NAFTA, Mr. Trump agreed at the last moment to renegotiate it, with talks to begin in August. And six months into his presidency, construction on a border wall has not even begun.

... Fears of a trade war, analysts said, appear to be greatly overblown, and those who were bearish on Mexico are now reassessing. The peso, in fact, is now 3 percent higher than it was before Mr. Trump’s election in November.

Read the rest at The Washington Times

Related: Trump Touts a Sweetheart Deal with Mexico That Doesn’t Put America First (MarketWatch)

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