The Mexican peso looks like it will remain painfully volatile against the dollar.
Fresh headlines on U.S.-Mexico relations sent the peso jumping against the dollar Friday, continuing a trend this week where incremental news sent the Mexican currency up or down more than 1 percent against the greenback.
"The concern here is that anyone who has to make a relevant investment or consumption decision in Mexico right now has to deal with more kinds of uncertainty, which might lead some of these agents to put off their decisions," said Alejo Czerwonko, emerging market strategist at UBS Wealth Management.
"And that doesn't bode well for economic activity in the country," he said.
On Friday, the peso hit 20.84 against the dollar, the strongest level against the greenback since Jan. 3. The more than 1.5 percent jump occurred following an afternoon White House statement said U.S. President Donald Trump spoke with Mexican President Enrique Pena Nieto by phone Friday morning for an hour.