MEXICO CITY (Reuters) – The Mexican peso has weakened practically 23% this yr to shut the newest buying and selling day on Tuesday at 20.82 pesos per U.S. greenback, the foreign money's largest drop towards the dollar because the international monetary disaster of 2008.
The peso's risky yr started with months of regular beneficial properties till the times following June's basic elections, which propelled the left-wing coalition led by the ruling Morena occasion to a powerful victory within the race for presidential election in addition to giant majorities in Congress.
Earlier than the elections, the Mexican foreign money traded in April at round 16.26 pesos to the greenback, reaching its highest stage in 9 years.
Morena's election victory paved the best way for the adoption of constitutional reforms in September, together with a significant overhaul of the justice system that critics say would undermine the independence of courts in Latin America's second-largest economic system.
The election of U.S. President-elect Donald Trump in November exacerbated the peso's plight, amid new tariff threats towards Mexico, which ships about 80% of its exports to its northern neighbor.
Mexico's major inventory index additionally misplaced worth over the yr, falling practically 14% to shut Tuesday at 49,513 factors, its largest decline since 2018.
