The Mexican Peso declined against the U.S. dollar in pre-European deals on Friday, amid heightening tensions between the U.S. and Mexico, after the U.S. President Donald Trump proposed a 20% import tax on goods from Mexico for the payment of the construction of a border wall.

Mexican President Enrique Peña Nieto had canceled his trip to the U.S., as Trump tweeted to cancel talks, if Mexico is unwilling to make payment for the border wall.

The Mexican Peso declined to a 2-day low of 21.38 against the greenback, compared to yesterday's closing value of 21.21. The next possible downside target for the Mexican Peso is seen around the 22.00 mark.

US Dollar vs MXN (FX:USDMXN)
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