Trump attacks peso: It is the most devalued currency against the dollar today

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Donald Trump’s victory in the Iowa caucuses has dealt a “blow” to the Mexican peso, which on Tuesday was positioned as the currency most depreciated against the dollar.

so, The exchange rate reached 17.23 pesos per US dollara depreciation of 2.007% compared to the closing price bank of mexico (Banxico) Yesterday, Monday, January 15th.

The news agency noted that investors are lowering expectations for an interest rate cut by the Federal Reserve (Fed) in March. Therefore, the US dollar shows global strength.

World crisis ‘scares’ dollar

Reuters He added that in addition to Trump’s victory at the start of the Republican White House primary, investors are also digesting various political and geopolitical events, such as tensions in the Red Sea, Gaza and Ukraine.

Monex believes that “the Mexican currency has been affected by rising international risk aversion, which has boosted the performance of the US dollar this morning.”

Mexican Peso: Does Trump pose a risk to the currency?

Gabriela Siller, head of economic analysis at Banco Base, believes Trump is no longer a huge risk to Mexico Just like 2016.

“The peso depreciated with his victory in Iowa, but is not expected to reach record highs like the last election. At least not because of Trump,” analysts estimate.

However, he said risks were still potential, some of which were due to:

  • fentanyl crisis
  • migrant
  • Corporate relocation—which, given the excitement it could bring, could take away some of the nearshoring opportunities in Mexico—
  • Review of Treaty between Mexico, United States and Canada (T-MEC) planned for 2026
  • Commentary on current geopolitical conflicts.

As a result, the Mexican peso is expected to trade in a range of $16.95 to $17.11 to $17.11 for the remainder of Tuesday, according to CiBanco.

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