The Mexican peso resisted the uncertainty generated by the return of Donald Trump as president of the United States and remained below 22 pesos on Monday, January 20, 2024. At the end of Trump's inauguration, the dollar price reached 21.52 pesos, representing a minimal depreciation of 4.6 cents for the Mexican currency.
Gabriela Siller Pagaza, the director of Economic Analysis at Grupo Financiero BASE, reported that the greenback traded at a maximum of 20.70 pesos during Trump's speech. Despite this, losses diminished as the presidential inauguration progressed. The peak in the exchange rate implied a depreciation of 0.65% for the Mexican peso, equivalent to 13.14 cents.
She explained that the absence in Trump's speech of the possible imposition of a 25% tariff on Mexican exports helped contain the dollar and momentarily dissipated financial uncertainty.
"Trump's speech ended, and there was no imposition of tariffs; nonetheless, what Trump said about declaring a national emergency at his Southern border with Mexico did generate greater risk aversion and an increase in the exchange rate," commented the director of Economic Analysis at Grupo BASE.
Meanwhile, Stock Exchanges in Mexico operated normally during Donald Trump's inauguration and reported gains close to 1% at the end of his speech. The Mexican Stock Exchange (BMV) recorded an increase of 0.57%, and the Price and Quotations Index reached 50,223.64 units. For its part, the Institutional Stock Exchange (BIVA) reported an increase of 0.75%.
