The Mexican peso briefly spiked more than 1 percent against the U.S. dollar on Thursday after Mexico’s central bank took steps to buttress its slumping currency.
Juan Garcia, director of national operations for the bank, told Reuters it began selling dollars, but did not specify how many dollars the bank was selling. The peso hit an all-time low versus the dollar on Wednesday, amid uncertainty over President-elect Donald Trump’s trade policies.
Mexico’s currency has taken a beating since Trump shocked the world by winning the U.S. presidential election. Trump called for an overhaul of the North American Free Trade Agreement and has repeatedly said he will construct a wall along the U.S.-Mexico border. Since Nov. 8, the peso has shed more than 16 percent against the dollar.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.