The Mexican peso appreciated against the US dollar for a fourth consecutive day on Friday to drop well below 20 for the greenback.
The Peso strengthened at 19.84 until the dollar Friday morning, before weakening slightly to negotiate itself at 19.88 at the greenback at 12 noon, Mexico City time, According to Yahoo Finance.
The last time the Peso was stronger was in November.
Compared to his Closing rate of the Bank of Mexico from 20.09 to dollar ThursdayPeso appreciated 1.3% to 19.84.
Peso appreciated around 2.5% since its fence at 20.36 in the dollar on Monday.
The MONEX Financial Group awarded the strengthening of the peso on Friday morning to the recent comments linked to Mexico made by US officials.
Commerce secretary Howard Lutnick said Thursday That Mexico and the United Kingdom were “pragmatic and thoughtful” in their response to the United States in steel and aluminum states that entered into force on Wednesday. Unlike Canada and the European Union, Mexico and the United Kingdom have refrained from immediately announcing reprisal measures.
President Claudia Sheinbaum and the Minister of the Economy Marcelo Ebrard said that Mexico will wait for the United States to implement reciprocal prices at the beginning of next month before determining reprisals.
Lutnick said the way the United States is dealing with Mexico and the United Kingdom on trade issues will be “better” because of their restraint.
For his part, Secretary of State Marco Rubio said Thursday That the Mexican government has taken “very strong measures that we have never seen in the past” against cartels and illegal immigration to the United States.
He also said that “we have seen a level of cooperation by the Mexican authorities that we have never seen in the past”, although he added that “it is not enough” and “we must do more”.
President Donald Trump used prices to put pressure on Mexico to do more to stem the flow of drugs and migrants in the United States
Monex said that the remarks of American officials – this did not specify which ones – “a attenuated part of nervousness” surrounding the Mexican peso.
The reinforcement of the peso this week comes after the currency depreciated at 21 at the dollar on March 4, The date on which the United States has imposed 25% prices on all imports from Mexico And most imports from Canada because of what the White House said was not to take adequate measures against “the influx of fatal drugs” in the United States
Most prices were raised two days latergiving the Peso an immediate boost.
While the four -day peso winning sequence this week places it in its strongest position in four months, the currency remains much lower than the 4:30 p.m. at the dollar level he reached last April.
With reports from The Economist
