The Mexican peso closed 2017, a year of plenty of political, commercial and fiscal turbulence, with a small gain of 5.15 percent in appreciation against the US dollar, which makes it the best performing currency of Latin America for that year.
After loosing around 60 percent of its value during the four previous years, in 2017 the Mexican currency experienced several highs and lows marked by turmoil. The first quarter closed 9.44 percent up, and the last was 7.69 percent down.
Among the main factors driving the price of the peso were the policies implemented by Trump’s government at a commercial, fiscal, and even migratory level, which many times were aimed directly at Mexico and made many investors wary. Experts point out that the process of renegotiation of NAFTA was a key point of stress during the second half of the year. This was compounded with the effect of the ongoing normalization process carried out by the Federal Reserve (Fed) on its monetary policy which affected the exchange market.
However, the peso firmly stood its ground, with a rise of up to 20 percent against the dollar since Trump took office, and then coming back from a 13.7 percent fall at the end of the year.