The Mexican peso rebounds amid uncertainty over the possible return of Trump

The Mexican peso has managed to regain ground against the dollar after experiencing losses for two consecutive days. Despite this progress, uncertainty continues to loom in the financial markets, and one of the factors causing concern is the possibility of Donald Trump returning to the presidency of the United States. At the start of the session, the exchange rate was at 17.8320 pesos per dollar, representing an increase of 0.82% compared to the closing rate reported by the Bank of Mexico on Thursday. This slight appreciation has been met with some relief by investors, although a risk aversion that has not completely dissipated persists. The financial firm Monex has pointed out that Trump's extremist comments have contributed to increasing uncertainty around the Mexican economy, especially if the former president were to win the elections in November. The prospect of Trump returning to the White House has raised concerns in the markets, given his history of aggressive trade policies and unpredictable rhetoric. Trump's acceptance speech for the Republican Party nomination has further fueled uncertainty. Meanwhile, his election rival, Democratic President Joe Biden, is reportedly considering withdrawing from the race, according to close sources. During his speech, Trump mentioned Mexico, but did not launch direct attacks on the country. Instead, he reiterated campaign promises such as restricting illegal immigration and imposing tariffs as strategies to attract investment to the United States, according to Banco Base. These policies could have a significant impact on the Mexican economy, particularly if threats to impose 200% tariffs on Chinese cars manufactured in Mexico materialize. Furthermore, the fall in the CrowdStrike system, an incident that has heightened global cybersecurity fears, has contributed to increasing risk aversion in the financial markets. Such unforeseen events can have repercussions on international economic stability and, consequently, affect the exchange rate of currencies like the Mexican peso against the dollar. In summary, despite the Mexican peso's recovery against the dollar in the current session, uncertainty persists in the financial markets due to various factors, including the potential return of Donald Trump to the U.S. presidency. Investors will be attentive to any political or economic developments that could influence currency movements and decision-making on the international stage.