On Friday the Mexican peso dropped to 120-day lows versus the greenback after the U.S surprisingly announced that will strike Mexico with tariffs on all Mexican goods.
The Japanese yen due to its safe-haven nature improved while Trump's move to increase its trade war with other countries pressed down the already weak investor sentiment in global markets. Mizuho Bank chief market economist Daisuke Karakama said “The news on Mexican tariffs came just as the United States is imposing tariffs on China, and the timing is stirring up the markets,”
“Headlines related to trade issues come in short, unpredictable bursts. Currency market reaction is therefore quite intense, but also tends to be short-lived.”
Trump to impose traffics on Mexican imports
Daily Analysis - 31/05/2019