The Mexican peso is a barometer of Trump's economic threat, and right now it's really strong
The Mexican peso is a barometer of Trump's economic threat, and right now it's really strong
- The election of Donald Trump turned the Mexican peso into a symbolic—and hypersensitive—indicator of the threat the new US president posed to the interconnected global economy.
The value of the Mexican currency plummeted to a record low the day after the vote and in the following months continued to tumble with every Trump tweet about his plans for a border wall and import taxes.
But the peso’s current level now suggests Trump is much less dangerous than foreign exchange markets had anticipated; it has recovered to pre-Trumpian levels, and then some.
- The election of Donald Trump turned the Mexican peso into a symbolic—and hypersensitive—indicator of the threat the new US president posed to the interconnected global economy.
The value of the Mexican currency plummeted to a record low the day after the vote and in the following months continued to tumble with every Trump tweet about his plans for a border wall and import taxes.
But the peso’s current level now suggests Trump is much less dangerous than foreign exchange markets had anticipated; it has recovered to pre-Trumpian levels, and then some.