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Mexican peso strengthens as Trump uncertainty lingers

The peso had strengthened on Friday after Trump refrained from specifically mentioning Mexico in his inauguration speech.

Mexican peso strengthens as Trump uncertainty lingers
23/01/2017 |13:51Reuters |
Redacción El Universal
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Latin American currencies strengthened on Monday as traders sought further clarity on U.S. President Donald Trump's protectionist pledges.

The Mexican peso strengthened as much as 1.5 percent to a two-week high before paring back gains to around 0.6 percent.

The peso had strengthened on Friday after Trump refrained from specifically mentioning Mexico in his inauguration speech after promising to renegotiate U.S. trade deals with the neighboring country throughout his campaign.

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Trump said on Sunday he planned to talk soon with the leaders of Canada and Mexico to begin discussing the North American Free Trade Agreement (NAFTA).

Wider emerging markets had also rallied earlier in the day, with MSCI's emerging markets index snapping a two-day losing streak.

Still, traders warned of volatility in the coming weeks as Trump's plans become clearer.