Mexican peso, stocks are strong performers in March thanks to Trump trade unwind

A worker wraps a stack of Mexican 1,000 peso bills inside a currency exchange store in Mexico City.
Susana Gonzalez | Bloomberg | Getty Images

Mexico's peso and stock market apparently do well when President Donald Trump does not.

The peso, supported by Mexican central bank rate hikes, has also been rising in lockstep with the Mexican stock market. Crushed after Trump won the presidential election, the currency has been rebounding and is now up just about 6 percent against the dollar in March alone, a top performer against the greenback among the world's major currencies. The peso was lower on Tuesday.

Mexico's outperformance has to do with the U.S. president's performance, analysts say. Trump has ordered a wall to be built on the Mexican border, is renegotiating NAFTA and has criticized Mexico over immigration. But he was seemingly weakened in his ability to take action, after last week's health-care debacle.

"Trump risks receding after the health-care bill," notes Andres Jaime, Barclays global foreign exchange and rates strategist, in an email about Mexico's markets.

Mexico's IPC stock index hit a new intraday high Tuesday and is now up more than 5 percent for the month, on pace for its best month in two years. In the same period, the is flat.