Peso Gains, Yen Slides as U.S. Decides Against Tariffs on Mexico

(Bloomberg) -- The Mexican peso rallied while havens such as the Japanese yen retreated in early Asia-Pacific trading Monday as investors reacted to the decision by the U.S. not to impose tariffs on Mexico. The Australian dollar climbed.

• Mexican peso gained ~1.7% to 19.3025 per dollar
• USD/JPY rose 0.4% to 108.63
• AUD/USD climbed 0.3% to 0.7019
• EUR/USD declined 0.2% to 1.1312
• Foreign-exchange markets among first to start trading for the week, while bond and equity markets remain closed for now
• NOTE: U.S. President Donald Trump decided to suspend tariffs on Mexico after the two nations reached an agreement late Friday; investors returning to work Monday have a glimmer of optimism on trade to welcome them while underlying concerns about slowing global growth remain as conspicuous as ever; U.S. Treasury Secretary Steven Mnuchin tweeted he had a “candid” and “constructive” talk on trade issues with People’s Bank of China Governor Yi Gang on the sidelines of the Group-of-20 meetings in Fukuoka, Japan

To contact the reporter on this story: Benjamin Purvis in New York at bpurvis@bloomberg.net

To contact the editors responsible for this story: Paul Dobson at pdobson2@bloomberg.net, Katherine Greifeld

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