The Mexican peso, after falling 18 percent against the dollar from the U.S. presidential election day to the day before the inauguration on January 19, it has rallied almost 20 percent from its low, and is now up 15 percent on the year. The peso is now even 4 percent stronger than before Trump’s surprise victory on November 8th.
The peso has been widely viewed as a finanical proxy and measure of President Trump’s political capital and popularity,
The election of Donald Trump turned the Mexican peso into a symbolic—and hypersensitive—indicator of the threat the new US president posed to the interconnected global economy.
The value of the Mexican currency plummeted to a record low the day after the vote and in the following months continued to tumble with every Trump tweet about his plans for a border wall and import taxes.
But the peso’s current level now suggests Trump is much less dangerous than foreign exchange markets had anticipated; it has recovered to pre-Trumpian levels, and then some…(Another Trump-induced fear is that his antagonistic rhetoric towards Mexico will fuel support for a populist politician who wants to run for president in 2018, Andrés Manuel López Obrador.)
…As the peso strengthens, Trump’s popularity has moved in the opposite direction. Polls put the president’s disapproval ratings at roughly 56%, up from around 41% on inauguration day. In some ways, Trump’s woes could be good news for Mexico, because they might signal that his administration won’t be effective enough to make good on his threats—for example, building a border wall. Trump has also learned that some of his positions, such as tearing up the North American Trade Agreement, ultimately weren’t that popular with members of his own party, forcing him to backtrack. – Quartz
Mexico is also very fortunate to have one, if not the, world’s best central bankers in Agustín Carstens, a Ph.D. economist from the University of Chicago.