The Mexican peso fell to fresh record lows against the U.S. dollar on Wednesday as traders awaited a press conference by U.S. President-elect Donald Trump.
Markets were braced for Trump’s first formal press conference since his surprise presidential election win in November as they awaited possible indications on the direction of his economic policies.
The press conference was due to be held at 11.00 ET in New York.
The peso has dropped almost 16% against the dollar since November’s election results amid fears that potential changes to U.S. trade policy under the incoming Trump administration will curtail investment to the Latin American country.
Trump will take office on January 20 and has yet to outline his policies in detail.
While Trump’s election pledges for tax cuts and more infrastructure spending have boosted U.S. stocks and the dollar, his protectionist stance and the sudden episodes of market volatility triggered by his prolific tweeting have made many investors wary.
Meanwhile, data earlier this week showed that the annual rate of inflation in Mexico ticked up to a two-year high in December, increasing the likelihood that the central bank could raise interest rates again.
Mexican consumer prices rose by an annualized 3.36% last month national statistics agency INEGI said on Monday, the highest rate since December 2014.
Last month, Mexico’s central bank raised interest rates to 5.75%, taking borrowing costs to the highest level since April 2009. It was the fifth time the bank hiked rates in 2016.
The bank’s meeting minutes said officials would remain attentive to potential pass-through from the exchange rate to inflation.