The Mexican currency continues to gain ground against the dollar as the perception of risk grows regarding the United States due to its protectionist policies and its strategy of using trade as a negotiation weapon. At the start of this Wednesday's session, the exchange rate reached a new low not seen in over a year, where the peso broke the barrier of 17.48 units per dollar, marking an advance of 0.69% compared to the previous day and levels not seen since June 6, 2024. Furthermore, the Mexican currency is the fourth with the greatest appreciation in the basket of main crosses: the South Korean won with 0.82%, the Norwegian krone with 0.82%, the Russian ruble with 0.76%, and the Mexican peso with 0.69%. The price benefits as the dollar weakens for the third consecutive session, a period in which it has accumulated a fall of 0.72%, in a context where the credibility of the United States is deteriorating strongly amid a more aggressive protectionist stance and international intervention. A stance that was established at the World Economic Forum in Davos, where this morning President Donald Trump maintained his threatening posture: he reiterated his intention to take over Greenland. Although he ruled out military intervention, he aggressively demanded immediate dialogue to acquire the island, while boasting about the strength of the United States. Sheinbaum celebrated the harsh speech by Carney in Davos, which criticized the use of trade as a weapon. Previously, at the same forum, his team had sent signals in the same vein. Jamieson Greer, US Trade Representative, defended the tariff strategy as a means of defending national security and foreign policy and warned Europe that it would be imprudent to take retaliatory measures. Similarly, US Treasury Secretary Scott Bessent warned Europeans that it would be detrimental to increase their military presence in Greenland, as he said they are sending confusing signals. Amidst geopolitical tensions, signals are also expected in the neighboring country regarding the future of its central bank, the Fed, due to the imminent departure of Jerome Powell, which will give Trump the opportunity to have allies who will expedite the rate cuts he desires.
