(Adds detail on peso move)
MEXICO CITY Jan 3 Mexico's peso fell on Tuesday
to touch its weakest level in seven weeks after Ford, the
second-largest U.S. automaker, said it will cancel a planned
$1.6 billion factory in Mexico's central state of San Luis
The peso weakened 0.93 percent to 20.9315 per
dollar, its lowest level since Nov. 14, following the
announcement by Ford, which had come under harsh criticism from
U.S. President-elect Donald Trump for its Mexican investment
Ford said it will invest $700 million at a Michigan factory.
The Mexican currency hit a record low after Trump clinched
U.S. presidential elections in November.
The real estate mogul has threatened to scrap a key free
trade deal between the two countries and slap a tax on
remittances to Mexico if the country refuses to pay for a wall
along its northern border.
Mexico's IPC stock index pared gains of over 1
percent to trade nearly flat at 45,755 points following Ford's
(Reporting by Miguel Angel Gutierrez; Writing by Alexandra
Alper; Editing by Alan Crosby)