The peso fell to an historic low Wednesday, September 21, closing at 19.96 to the U.S. dollar. Mexico’s currency recovered slightly by Thursday to 19.70, although some banks and exchange houses were still trading above the 20-peso barrier.
Reasons cited for the peso’s decline are the continuing fall in international oil prices, speculation of an increase in U.S. interest rates and the bounce in the polls for Donald Trump, the Republican candidate for U.S. president who has vowed to deport all undocumented immigrants from the United States, erect a wall along the 2,000-mile border and renegotiate – or even scrap – the North American Free Trade Agreement (NAFTA).
Mexican government officials have dismissed the “Trump” effect as significant reason for the peso’s decline.