INSUBCONTINENT EXCLUSIVE:
The Mexican peso fell against the U.S
dollar on Thursday after U.S
President Donald Trump confirmed that tariffs on imports from Mexico and Canada will take effect on March 2.The announcement reversed
earlier optimism that the tariffs might be delayed, shaking investor confidence and pushing the peso lower
The exchange rate fluctuated between a high of 20.5487 and a low of 20.3584 during the day.Earlier, the peso had shown strength for a second
consecutive session, buoyed by comments from White House economic advisor Kevin Hassett, who suggested that tariff decisions could hinge on
The country reported a trade deficit of $4.55 billion in January, compared to a surplus in December, alongside a rise in unemployment to
2.7%.Mexican Peso Slides as Trump Confirms Tariffs on Mexico and Canada
(Photo Internet reproduction)Meanwhile, mixed U.S
economic data showed steady GDP growth at 2.3% quarter-on-quarter but weaker-than-expected jobless claims, further complicating global
market sentiment.Peso Faces Pressure Amid Stronger U.S
DollarThe peso faced additional pressure from a stronger U.S
dollar, with the Dollar Index (DXY), which measures the greenback against six major currencies, rising 0.58% to 107.13 points.Emerging
market currencies like the peso often struggle when the dollar strengthens due to reduced risk appetite among investors
dollar.Banco Base noted that negotiations between Mexico and the U.S
trade talks or domestic economic improvements.As March 4 approaches, markets will closely watch developments in U.S.-Mexico negotiations
These negotiations could have a potential impact on trade and investment flows in the region.
