Mexico peso firms to strongest since Trump election

3/20/2017 Reuters

mexico-pesoMexico’s peso firmed on Monday to its strongest since Donald Trump clinched the U.S. presidency in November, tracking Latin American currencies higher after the U.S. Federal Reserve signalled it would hike rates gradually.

The peso gained more than 0.5 percent to 18.9750 per dollar, its strongest since Nov. 9 after Trump sailed to victory, vowing to build a wall on the U.S.-Mexico border and threatening to pull out of a key trade deal with Mexico.

The currency has perked up since the Fed last week stuck to its outlook for two more hikes this year and three more in 2018, when many had expected an accelerated spate of moves.

Philadelphia Federal Reserve president Patrick Harker echoed the statement on Monday, saying the bank would push inflation a bit above its 2-percent target even as it continues to gradually raise interest rates.

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