The weakness in the Mexican peso looks like it will continue in 2017 as traders come to grips with potential changes in U.S. trade policy.
"The market is increasingly convinced Donald Trump wasn't kidding around about tackling Mexico and production in Mexico," said Adam Button, currency analyst at ForexLive.com.
The peso fell for a second straight day Wednesday to record lows against the U.S. dollar as traders worried about the negative impact of President-elect Donald Trump's policies on the Mexican economy.
"The key driver for the last two days is the news that Ford would not be investing in Mexico and there's concern GM" may not either, said Thierry Albert Wizman, global interest rates and currencies strategist at Macquarie.
"People were looking for investment in Mexico to be stronger this year, and now a lot of foreign direct investment can be taken away from Mexico without any legal" action," Wizman said.
The peso briefly traded more than 2 percent weaker against the U.S. dollar on Wednesday, hitting 21.619 and breaking past a previous record of 21.3952 set on Nov. 11, three days after the election. The move extended Tuesday's roughly 2 percent drop in the peso.