Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Mexico's peso hits record low on Trump talk of wall, auto tax

Published 01/11/2017, 01:51 PM
© Reuters. A picture illustration shows Mexican pesos and U.S. dollars banknotes in Mexico City

MEXICO CITY (Reuters) - The Mexican peso

Speaking at a news conference in New York, Trump also reiterated that the United States would start building a southern border wall after he took office next week. He said Mexico would reimburse the cost either through a tax or a payment.

The Mexican currency regained some ground after passing the psychological 22 peso barrier to trade at 21.77 per dollar at 13:09 a.m. eastern (1709 GMT). The IPC stock index (MXX) fell 0.73 pct to 45,550.

The peso was the worst-performing major currency last year, weakening 20 percent against the dollar as Trump closed in on the U.S. presidency.

The depreciation has sped up in 2017 after Trump told major automakers last week to expect high taxes on vehicles made in Mexico that are sold in the United States.

On Wednesday, Trump congratulated Ford (N:F) and Fiat Chrysler (MI:FCHA) for announcing plant expansions in the United States. He said General Motors (NYSE:GM), another major investor in Mexico, should follow suit, reiterating the threat of new taxes on Mexican-made autos.

He said he would not wait for negotiations with Mexico to be completed before starting to build a wall along the two countries' border.

"I could wait about a year and a half until we finish our negotiations with Mexico which will start immediately after we get into office, but I don't want to wait," Trump said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"Mexico in some form ... will reimburse us," Trump added.

He said his vice president-elect Mike Pence was "leading an effort to get final approvals through various agencies and through Congress for the wall to begin."

Mexico has repeatedly said it will never pay for a barrier it considers an insult to national dignity.

"Neither today, nor tomorrow nor never Mexico will pay for that stupid wall. If Trump wants a monument to his ego, let him pay for it!!," former president Vicente Fox, said on Twitter during the news conference, describing the U.S. leader as "a bully and a bluff."

Latest comments

You have to love politicians! So Mr. Trump, who's going to pay for that tax increase? The consumer, the one he suppose to protect! LOL
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.