The Mexican peso tumbled to the lowest level since its re-denomination in 1993 amid concern over U.S. trade policy. MXN had eased notably against USD, but the currency climbed as much as 1.5 percent after Banxico confirmed that it was selling dollars to bolster the exchange rate from a record low.
Appointment of important posts for the US Department of Commerce which underpin the protectionist approach of the future US President weighed heavily on sentiment. Further, the decision of US car manufacturer Ford Motor Co. not to set up a factory in Mexico saw a 3.5 percent dip in MXN in two days.
On Thursday, the central bank finally intervened and tried to support MXN with the help of USD sales. The effect wore off quickly, as the uncertainty about US trade policies is too high. Banxico demonstrated determination to dampen excessive MXN depreciation.
“Two interventions in two days suggest the central bank has become even more nervous,” said Masashi Murata, a Tokyo-based currency strategist at Brown Brothers Harriman & Co.


Bank of Japan Likely to Delay Rate Hike Until July as Economists Eye 1% by September
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed
Fed Confirms Rate Meeting Schedule Despite Severe Winter Storm in Washington D.C.
India Budget 2025 Highlights Manufacturing Push but Falls Short of Market Expectations
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook
Markets React as Tensions Rise Between White House and Federal Reserve Over Interest Rate Pressure
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets
U.S. Stock Futures Slip as Markets Brace for Big Tech Earnings and Key Data




