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An escalating trade war between the US and Mexico saw the peso decline to 20.45 – the lowest it had been in a year. It was a reversal of the trend that had seen the currency become the best performer in emerging markets, rising almost 7% against the dollar as early as May.

The sell-off intensified when Mexico retaliated to the 25% tariff on steel and 10% on aluminium imports implemented by US President Donald Trump in an attempt to gain more favourable trade terms for his country. It was clear

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