The Mexican peso is all over the place

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Markets Insider

The Mexican peso is back down again after retracing its losses minutes earlier.

The currency is down by 0.4% at 21.8862 per dolla as of 11:57 a.m. ET.

The peso rallied to being little changed for the day at 21.7819 per dollar around 11:45 a.m. ET after earlier being down by about 1.0% at 22.0196 per dollar around 11 a.m. ET.

This follows Tuesday, when it dropped to a new record low. 

The currency became something of a gauge of Trump’s prospects during the last few months leading up to the election. When traders thought Trump’s prospects of winning went up, the peso often went down against the US dollar – and vice versa. 

It weakened by about 20% against the dollar last year.

Analysts and economists had attributed the currency’s volatile moves to the fact that Trump’s strong protectionist platform would most likely have negative repercussions for the Mexican economy if implemented. 

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