Trump Trade Risks Seen Spreading Peso Woes to Canadian Dollar
- Mexico’s currency has taken the brunt of trade policy risks
- Banxico intervention tools could limit further decline
Wilbur Ross: Nafta Logically First Thing to Deal With
This article is for subscribers only.
While the currency market fixates on the Mexican peso every time U.S. President Donald Trump tweets about trade, the Canadian dollar may have more at stake if protectionist policies materialize.
Both currencies fell roughly 2 percent against the U.S. dollar after commerce secretary nominee Wilbur Ross said Wednesday the new administration will start the process of renegotiating Nafta soon after the inauguration. But while the peso has sunk 15 percent since Trump’s victory, the recent weakness has so far left the Canadian dollar little changed.