The Mexican currency dropped to an all-time low after the U.S. President-elect mentioned the border tax issue at his first press conference since his election. Fred Katayama reports.
U.S. President-elect Donald Trump dealing another blow to the Mexican peso. The currency slumping to a historic low against the dollar after he reiterated his threat that the U.S. would slap a big border tax on companies that move their plants to Mexico or other foreign countries. SOUNDBITE: DONALD TRUMP, U.S. PRESIDENT ELECT, (ENGLISH) SAYING: "It's not going to happen. You're going to pay a very large border tax." The peso was the world's worst performing major currency last year, plunging 20 percent against the dollar as Trump closed in on the presidency. It has since fallen more than 5 percent this year. Former Mexican finance minister Jose Angel Gurria said Tuesday the peso could face more pressure. SOUNDBITE: JOSE ANGEL GURRIA, SECRETARY GENERAL, ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT, (SPANISH) SAYING: "It is probably, I say inevitable that it continues to depreciate in light of the pressures and the Central Bank will seek to avoid (fluctuations) so that it is more orderly." He said the Mexican central bank's move to sell $2 billion in dollar reserves last week to support the peso helped prevent a deeper crash. Mexico has become a punching bag for Trump, who has also threatened to withdraw from a joint trade deal and impose heavy tariffs on Mexican-made goods.