The Mexican peso is higher by 1% at 21.0026 per dollar as of 9:15 a.m. ET after a tweet from President Trump stated, “
Mexico has taken advantage of the U.S. for long enough. Massive trade deficits & little help on the very weak border must change, NOW!”
The peso was clinging to small gains ahead of the tweet from President Trump but accelerated to its best levels of the day after Trump continued his aggressive tone towards Mexico. Friday’s gains come after a wild session on Thursday that saw the peso climb as much as 1.3% following a back and forth between Trump and Mexican President Enrique Peña Nieto.
Early on Thursday, Trump tweeted, “The U.S. has a 60 billion dollar trade deficit with Mexico. It has been a one-sided deal from the beginning of NAFTA with massive numbers of jobs and companies lost. If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting.”
Peña Nieto responded with a tweet of his, “This morning we have informed the White House that I will not attend the meeting scheduled for next Tuesday with the @POTUS.” The Mexican president has repeatedly said that Mexico will not pay for the boarder wall.
Later on Thursday, the Trump administration said it was considering a 20% border tax on Mexican imports to pay for the wall.
The Mexican peso has fallen about 13% since Trump’s election victory on November 8th.