MEXICO CITY (Reuters) – The Mexican peso weakened nearly 23% this year, ending its last trading day on Tuesday at 20.82 pesos per U.S. dollar, the currency’s deepest decline against the dollar since the 2008 global financial crisis.
The peso’s volatile year began with months of steady gains until the days after the June general election, which carried the left-wing coalition led by the ruling Morena party to a resounding victory in the presidential race and large majorities in Congress.
Ahead of the election, the Mexican currency traded at about 16.26 pesos per dollar in April, hitting a nine-year high.
Morena’s election victory paved the way for constitutional reforms in September, including a sweeping overhaul of the judiciary that critics say will undermine the independence of the courts in Latin America’s second-largest economy.
The election of newly-elected US President Donald Trump in November has exacerbated the peso’s shaky ride amid his new tariff threats against Mexico, which sends about 80% of its exports to its northern neighbor.
Mexico’s main stock index also fell almost 14% over the year, closing at 49,513 points on Tuesday, its steepest decline since 2018.
