Mexico’s peso plummets to new low on Trump effect

MEXICO CITY—The Mexican peso endured one of its worst week in two decades, falling to a new record low on Friday over concerns about President-elect Donald Trump’s economic policies.

The currency traded at 21.15 pesos per dollar on Friday afternoon, down 8.75 percent compared to last week and 1.65 percent from late Thursday, according to private bank Citibanamex.

The peso had started the day even worse, sinking to 21.45 to the dollar, before regaining some ground.

It was among the worst weeks for the peso since an economic crisis and devaluation of the peso in 1995.

The peso had rallied in the hours preceding Tuesday’s election on optimism that Democratic candidate Hillary Clinton would win.

But Trump’s triumph sent the Mexican currency past the 20 pesos barrier on Wednesday while the stock market plunged.

Shares fell 0.54 percent on Friday compared to Thursday and were down 3.68 percent for the week.

The Republican billionaire has vowed to make Mexico pay for a massive border wall and renegotiate the North America Free Trade Agreement (NAFTA).

While Mexico’s government criticized some of Trump’s remarks during the campaign, President Enrique Peña Nieto said Friday he felt “very optimistic” about relations with the new US administration.

Finance Minister Jose Antonio Meade reiterated on Friday that the government, which has international reserves of $175.1 billion, does not need to intervene in the markets to protect the peso for now.

There is “volatility in all the global markets and therefore an intervention wouldn’t have had the impact that we would have hoped,” he said.

But authorities remain “vigilant” in case action is needed, Meade said.

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