Chart of the week: a pause in the peso’s decline

Chart of MExican peso against the US dollar

The Mexican peso has bounced by around 5% from record lows against the US dollar in the past few days. But it has still lost 12% in a year, and the respite looks unlikely to last long, says  Roger Blitz in the FT.

The dollar’s ascent has been tempered by the prospect of Trump’s fiscal stimulus being watered down in Congress. But he is still evidently determined to slap tariffs on Mexican imports, and there are other problems pointing to a lower peso.

Mexico is suffering from rising inflation, a large current account deficit and lacklustre growth. The latter could trigger a credit-rating downgrade.


“By 2020, small firms turning over as little as £10,000 a year will have to file [their tax returns] online every three months, with some due to begin in April 2018. The Treasury Committee can’t see why companies earning less than the VAT threshold of £83,000 need to be captured by the new system initially… The switch to digital makes sense but, as currently proposed, all the risk and extra cost is piled onto entrepreneurs while the reward is reaped by HMRC, which believes the Making Tax Digital initiative will bring in extra receipts of £625m. How much more might it earn if the tycoons of tomorrow were not put off from setting up shop?”

James Ashton, Evening Standard

66% off newsstand price

12 issues (and much more) for just £12

That’s right. We’ll give you 12 issues of MoneyWeek magazine, complete access to our exclusive web articles, our latest wealth building reports and videos as well as our subscriber-only email… for just £12.

That’s just £1 per week for Britain’s best-selling financial magazine.

Click here to take advantage of our offer

Britain is leaving the European Union. Donald Trump is reducing America’s role in global markets. Both will have profound consequences for you as an investor.

MoneyWeek analyses the critical issues facing British investors on a weekly basis. And, unlike other publications, we provide you with the solutions to help you turn a situation to your financial advantage.

Take up our offer today, and we’ll send you three of our most important investment reports:

All three of these reports are yours when you take up our 12 issues for £12 offer today.

MoneyWeek has been advising private British investors on what to do with their money since 2000. Our calls over that period have enabled our readers to both make and save a great deal of money – hence our position as the UK’s most-trusted investment publication.

Click here to subscribe for just £12