Mexican peso a barometer of Trump’s economic threat, and right now it’s really strong

imaginethat

Forum Staff
Oct 2010
71,702
32,245
Colorado
Who's afraid of the Big Bad Trump?

The Mexican peso is a barometer of Trump’s economic threat, and right now it’s really strong

The election of Donald Trump turned the Mexican peso into a symbolic—and hypersensitive—indicator of the threat the new US president posed to the interconnected global economy.

The value of the Mexican currency plummeted to a record low the day after the vote and in the following months continued to tumble with every Trump tweet about his plans for a border wall and import taxes.

But the peso’s current level now suggests Trump is much less dangerous than foreign exchange markets had anticipated; it has recovered to pre-Trumpian levels, and then some.

On June 6, the peso got a new boost after US and Mexican officials avoided a bitter trade dispute on sugar through an agreement. The currency traded as low as 18.24 pesos per dollar the day of the announcement—down from a high of nearly 22 pesos per dollar in January and more than 18.50 the day after the US election.

The peso had already rallied on June 5 after Mexico’s ruling party narrowly defeated its leftist opponent in a keystone state election. (Another Trump-induced fear is that his antagonistic rhetoric towards Mexico will fuel support for a populist politician who wants to run for president in 2018, Andrés Manuel López Obrador.)

As the peso strengthens, Trump’s popularity has moved in the opposite direction. Polls put the president’s disapproval ratings at roughly 56%, up from around 41% on inauguration day....​

More: https://qz.com/1000089/the-mexican-peso-is-a-barometer-of-trumps-economic-threat-and-right-now-its-really-strong/?utm_source&google_editors_picks=true
 
  • Like
Reactions: 1 person
Sep 2015
14,304
5,088
Brown Township, Ohio
Who's afraid of the Big Bad Trump?

The Mexican peso is a barometer of Trump’s economic threat, and right now it’s really strong

The election of Donald Trump turned the Mexican peso into a symbolic—and hypersensitive—indicator of the threat the new US president posed to the interconnected global economy.

The value of the Mexican currency plummeted to a record low the day after the vote and in the following months continued to tumble with every Trump tweet about his plans for a border wall and import taxes.

But the peso’s current level now suggests Trump is much less dangerous than foreign exchange markets had anticipated; it has recovered to pre-Trumpian levels, and then some.

On June 6, the peso got a new boost after US and Mexican officials avoided a bitter trade dispute on sugar through an agreement. The currency traded as low as 18.24 pesos per dollar the day of the announcement—down from a high of nearly 22 pesos per dollar in January and more than 18.50 the day after the US election.

The peso had already rallied on June 5 after Mexico’s ruling party narrowly defeated its leftist opponent in a keystone state election. (Another Trump-induced fear is that his antagonistic rhetoric towards Mexico will fuel support for a populist politician who wants to run for president in 2018, Andrés Manuel López Obrador.)

As the peso strengthens, Trump’s popularity has moved in the opposite direction. Polls put the president’s disapproval ratings at roughly 56%, up from around 41% on inauguration day....​

More: https://qz.com/1000089/the-mexican-peso-is-a-barometer-of-trumps-economic-threat-and-right-now-its-really-strong/?utm_source&google_editors_picks=true
Good News! A healthy peso will keep them from fleeing their home of record.