The Mexican peso is higher by 1.4%, at 20.9218 per dollar, as of 1:37 p.m. ET after the Washington Post reported that US President Donald Trump and Mexican President Enrique Peña Nieto had an hour-long phone conversation. The peso was already rising Friday and gained further after news of the phone conversation crossed.
Friday’s gains come after a wild session on Thursday that saw the peso climb by as much as 1.3% following a back-and-forth between Trump and Peña Nieto.
The call comes after the two leaders exchanged Tweets on Thursday and Friday morning.
Early on Thursday, Trump tweeted: “The U.S. has a 60 billion dollar trade deficit with Mexico. It has been a one-sided deal from the beginning of NAFTA with massive numbers of jobs and companies lost. If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting.”
Peña Nieto responded with a tweet, “This morning we have informed the White House that I will not attend the meeting scheduled for next Tuesday with the @POTUS.” The Mexican president has repeatedly said Mexico would not pay for the border wall.
Later on Thursday, the Trump administration said it was considering a 20% border tax on Mexican imports to pay for the wall. Then on Friday, Trump tweeted: "Mexico has taken advantage of the U.S. for long enough. Massive trade deficits & little help on the very weak border must change, NOW!"
The Mexican peso has fallen about 13% since Trump's election victory on November 8.
