The Peso took a tumble Thursday after Mexican President Enrique Peña Nieto announced he would not cooperate with US President Donald Trump’s construction of a wall between the two nations.
“The peso is down by 1.2% at 21.3175 per dollar as of 11:57 a.m. ET,” reports Business Insider.
“The currency was up as much as 0.8% at 20.9358 per dollar around 8:50 a.m. ET.”
The dip ends a rally for the Mexican currency which on Thursday was enjoying its strongest US exchange rate since January 3.
Another chart via Zero Hedge:
It also coincides with remarks from the Mexican president in which he said he rejected the US proposal to build a wall.
Dollar jumps vs. Peso after country's president says he won't go to meeting with Trump (corrects to USD vs. MXN) https://t.co/UZPF2kJcLA pic.twitter.com/BJcL2Kgcwc
— CNBC (@CNBC) January 26, 2017
“I regret and reject the decision of the U.S. to build the wall,” the president said in a national broadcast to the Mexican people Wednesday.
“Mexico does not believe in walls. I’ve said time again; Mexico will not pay for any wall,” he stated.
Trump and Peña Nieto were set to meet next week to discuss US-Mexico relations and the US commitment to build a southern border wall – with Mexico funding it.
When Trump heard the Mexican president had once again refused the notion of the wall, he called for the meeting to be cancelled.
The U.S. has a 60 billion dollar trade deficit with Mexico. It has been a one-sided deal from the beginning of NAFTA with massive numbers…
— Donald J. Trump (@realDonaldTrump) January 26, 2017
of jobs and companies lost. If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting.
— Donald J. Trump (@realDonaldTrump) January 26, 2017
Peña Nieto responded by saying he would not be attending the meeting after all.
“This morning we have informed the White House that I will not attend the meeting scheduled for next Tuesday with the POTUS,” Peña Nieto tweeted.
But later Thursday Nieto tweeted he was not averse to reaching a mutually benficial agreement.
“Mexico reiterates its willingness to work with the United States to achieve agreements in favour of both Nations,” the Mexican leader said in a tweet.
México reitera su voluntad de trabajar con los Estados Unidos para lograr acuerdos en favor de ambas naciones.
— Enrique Peña Nieto (@EPN) January 26, 2017
In an ABC News interview with the president aired Wednesday, Trump reiterated the wall would be built – and that Mexico would later reimburse the US for its construction.
“I’m just telling you there will be a payment. It will be in a form, perhaps a complicated form. And you have to understand what I’m doing is good for the United States. It’s also going to be good for Mexico.
“We wanna have a very stable, very solid Mexico. Even more solid than it is right now. And they need it also. Lots of things are coming across Mexico that they don’t want. I think it’s going to be a good thing for both countries. And I think the relationship will be better than ever before.
“You know, when we had a prisoner in Mexico, as you know, two years ago, that we were trying to get out. And Mexico was not helping us, I will tell you, those days are over. I think we’re gonna end up with a much better relationship with Mexico. We will have the wall and in a very serious form Mexico will pay for the wall.”
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