Mexico Peso Sinks on Tariff War, Bucking Gains in Emerging Peers
The Mexican peso plummeted after US President Donald Trump imposed import tariffs against the country, despite currencies from other developing nations holding steady due to speculation that the escalating trade war would lead to interest-rate cuts and dampen growth in the world's largest economy. The peso fell as much as 1.5% against the US dollar following Mexico's President Claudia Sheinbaum's announcement of retaliatory measures against the US on Sunday. The currency later pared its losses, with analysts expecting a range of 21.00-22.00 for the USDMXN.
- This unexpected move by Mexico highlights the complex web of interdependence between major economies and the far-reaching consequences of protectionist policies in the global trade landscape.
- How will the ongoing tariff war impact the global economic outlook, particularly among emerging markets that have been less affected so far?