Mexico's peso jumps as Trump tones down Mexico talk

The peso rose more than 2 percent after Trump said in a speech a strong Mexican economy was good for the United States and that he wanted to see it flourish.
EL UNIVERSAL/file photo
25/01/2017
16:54
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Jan 25 Mexico's peso strengthened to its highest level against the dollar in three weeks on Wednesday as U.S. President Donald Trump said the country's economic future was important to the United States even as he forged ahead with plans for a new border wall.

The peso rose more than 2 percent after Trump said in a speech a strong Mexican economy was good for the United States and that he wanted to see it flourish.

"His rhetoric is starting to change toward cooperation," said Gabriela Siller, an economist at Mexican bank Base.

The peso, which fell to multiple record lows after Trump's election, was the best-performing currency among the 36 most-traded in the world, Reuters data showed.

During the election campaign, Trump threatened to impose punitive tariffs on goods produced in Mexico and to tear up a joint trade agreement with Latin America's No. 2 economy. Mexico sends about 80 percent of its exports to the United States.

Traders and analysts said the shift in tone suggested he may not seek to impose tariffs across the board on Mexican exports.

The peso has gained more than 3.5 percent since Trump took office on Friday, when he shied away from mentioning his threats to curb trade with Mexico in his inaugural address. (Additional reporting by Michael O'Boyle; Editing by Tom Brown)

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