Mexico's peso weakened to a historic low of 22 per dollar on Wednesday, shortly after U.S. President-elect Donald Trump began a news conference in New York.
The peso was the worst-performing major currency last year, weakening 20 percent against the dollar as Trump closed in on the U.S. presidency.
The currency pared losses slightly after passing the psychological 22 peso barrier to trade at 21.90 per dollar, dipping 0.45 percent at 10:40 a.m. eastern.
The peso's depreciation has sped up in the first few days of 2017. Trump told major automakers last week to expect high taxes on vehicles made in Mexico that are sold in the United States as he attempts to bring back manufacturing jobs.
Earlier, the dollar gained ground against the yen, euro and pound on Wednesday, as expectations of a pro-growth message from U.S. President-elect Donald Trump's first news conference prevailed over worries about what he will say on trade and China.
The dollar has gained broadly since Trump's victory in November as investors bet he would boost public spending and spur repatriation of overseas funds by U.S. companies, policies expected to bring higher inflation and interest rates.