MEXICO CITY (Reuters) – Mexico’s peso weakened practically 23% this yr to shut the ultimate day of buying and selling at 20.82 pesos per U.S. greenback on Tuesday, the foreign money’s deepest drop in opposition to the dollar for the reason that 2008 world monetary disaster.
The peso’s risky yr kicked off with months of regular beneficial properties till the times following June’s basic election, which swept the leftist coalition led by the ruling Morena get together to a powerful victory within the presidential race in addition to giant congressional majorities.
Forward of the election, the Mexican foreign money traded in April at about 16.26 pesos per greenback to succeed in a nine-year excessive.
The election win for Morena paved the best way for passage of constitutional reforms in September, together with a significant overhaul of the judiciary that critics argue will undermine the independence of the courts in Latin America’s second-biggest financial system.
The election of U.S. President-elect Donald Trump in November exacerbated the peso’s rocky trip, amid his recent tariff threats in opposition to Mexico, which sends round 80% of its exports to its northern neighbor.
Mexico’s major inventory index additionally shed worth through the yr, dipping practically 14% to shut on Tuesday at 49,513 factors, its steepest fall since 2018.
