Since Trump won the election, Mexico has been taking a big hit economically. Big U.S companies such as Ford has promised to move their businesses back to the US from Mexico. During Trump’s press conference today, he reiterated Mexico will pay for the wall. In result, the Mexican Peso dropped to a historic low.
Reuters reported: The Mexican peso MXN= weakened to a historic low of 22.04 per dollar and the country’s stock index fell on Wednesday, after U.S. President-elect Donald Trump warned U.S. auto companies would face a high tax for products made south of the border.
Speaking at a news conference in New York, Trump also reiterated that the United States would start building a southern border wall after he took office next week. He said Mexico would reimburse the cost either through a tax or a payment.
The Mexican currency regained some ground after passing the psychological 22 peso barrier to trade at 21.77 per dollar at 13:09 a.m. eastern (1709 GMT). The IPC stock index .MXX fell 0.73 pct to 45,550.
The peso was the worst-performing major currency last year, weakening 20 percent against the dollar as Trump closed in on the U.S. presidency.
The depreciation has sped up in 2017 after Trump told major automakers last week to expect high taxes on vehicles made in Mexico that are sold in the United States.