Mexican Central Bank Props Up Peso

MEXICO CITY, Jan 5 (APP - UrduPoint / Pakistan Point News - 05th Jan, 2017 ) : The Mexican central bank intervened in the foreign exchange market to prop up the peso on Thursday after Ford's decision to scrap a new factory caused the Currency to sink.

The bank did not reveal the amount of Dollars it was selling in its first such action since Donald Trump won the US presidential election on November 8.

Trump, who takes office on January 20, has caused the peso to plunge to record lows due to his pledge to upend trade ties with Mexico and his threat to impose tariffs on companies that ship jobs across the border.

The peso has fallen by 3.44 percent since Ford announced on Tuesday the cancellation of a $1.6 billion factory in Mexico -- a project that Trump had repeatedly criticized. After the central bank's announcement, the Mexican currency traded at 21.60 pesos per Dollar, up 0.93 percent from the previous day, according to private bank Citibanamex.