Taco ‘bout a ComebackMeanwhile, on the other side of the earth, it’s a very different story as the Mexican peso (MXN) posted a massive quarterly gain against the USD, the likes of which haven’t been seen since 1977. Trump’s election caused a Titanic-esque sinking of the peso, but it has seen a rapid resurgence in the first quarter this year up 10.8% against the USD.
Trump’s rhetoric against Mexico has softened during his time in office. When he failed to gain support for other key initiatives, the peso continued its steady recovery. With Banxico, the Mexican central bank, raising interest rates last week, the peso’s gains increased again. Embracing emerging markets as they seek out higher gains, bullish traders are helping the peso return to pre-Trump nomination levels.