US President Donald Trump’s imposition of tariffs on Mexico, Canada, and China has triggered a slump in emerging-market currencies, with the Mexican peso and South African rand bearing the brunt of the losses. The peso has fallen to its lowest value against the dollar in nearly three years, while the rand has dropped by as much as 2%. This decline is largely driven by investors seeking safe-haven assets, such as the US dollar. Trump’s actions may also fuel inflationary pressures and keep US interest rates high, further exacerbating the downturn. The Mexican president, Claudia Sheinbaum, has vowed to retaliate against the US tariffs, adding to market volatility.
Source: https://www.bloomberg.com/news/articles/2025-02-03/mexican-peso-rand-lead-em-currency-selloff-on-trump-tariffs