Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.
Find out more at btsub.sg/promo
[TOKYO] Mexico's peso jumped as much as 1.1 per cent versus the US dollar after an adviser to Donald Trump hinted at a softer stance on trade.
The currency was set to snap a three-day drop following the publication of an opinion piece in the Financial Times by Trump economic adviser Anthony Scaramucci suggesting the US president-elect is open to negotiations before imposing import barriers. Mr Trump had campaigned on promises to tear up trade deals, including the North American Free Trade Agreement, crack down on illegal immigration, and build a wall along the southern border paid for by Mexico. The US accounts for 80 per cent of the Latin American nation's exports.
"Mr Trump believes in free-but-fair trade," Mr Scaramucci wrote. "Tariffs are unnecessary if agreements like the World Trade Organization and Nafta are adequately enforced."
The peso was 0.1 per cent stronger at 20.82 per US dollar as of 9:45am in Tokyo, after climbing as high as 20.61. It had dropped 12 per cent over the previous three sessions, the biggest decline of any currency worldwide, following Mr Trump's surprise win in the Nov 8 election.
Loomis Sayles & Co vice chairman Dan Fuss said last week investors are overestimating the risks a Mr Trump presidency poses to Mexican trade and investment.
"People have gotten very bearish because they expect the situation between the Mexican government and the US government to deteriorate badly," Mr Fuss said in an interview in Tokyo Friday.
"I don't agree with that. There's not going to be any wall."