Mexican peso jumps against Dollar after Trump calls off tariffs on Mexico

Vastavam web: The Mexican peso jumped against the dollar early in Asia on Monday after the United States and Mexico struck a migration deal late last week to avert a tariff war, providing much-needed relief to fragile market sentiment. Over the past year, trade disputes between the United States and its trading partners, including a long-running conflict with China, have slowed global growth and unsettled financial markets.

Group of 20 finance leaders on Sunday said that trade and geopolitical tensions have “intensified”, raising risks to improving global growth, but they stopped short of calling for a resolution of the deepening U.S.-China trade conflict. The Mexican peso rose as much as 2% against the dollar as trading resumed for the first time after Mexico agreed on Friday to expand along the entire border a program that sends migrants seeking asylum in the United States to Mexico. The peso was last up 1.65% at 19.30 pesos per dollar.

U.S. President Donald Trump had threatened to impose 5% import tariffs on all Mexican goods starting on Monday if Mexico did not commit to do more to tighten its borders.