Mexican Peso Strengthens as U.S. Dollar Weakens, Gains 1.17% for the Week
The Mexican peso appreciated against the U.S. dollar on Friday, benefiting from a weaker greenback amid speculation that the proposed U.S. reciprocal tariffs may be more of a negotiation strategy than an imminent policy shift.
The exchange rate closed at 20.3040 pesos per dollar, compared to 20.4780 pesos on Thursday, according to official data from the Bank of Mexico (Banxico). This represents a gain of 17.40 centavos, or 0.85%. The dollar fluctuated within a range of 20.4380 at its highest and 20.2630 at its lowest. Meanwhile, the U.S. Dollar Index (DXY), which measures the dollar against a basket of six major currencies, fell 0.27% to 106.77 points.
| Broker | Review | Regulators | Min Deposit | Website | |
|---|---|---|---|---|---|
| 🥇 |  | Read Review | FCA, CySEC, ASIC, MAS, FSA, EFSA, DFSA, CFTC | USD 100 | Visit Broker |
| 🥈 |  | Read Review | FSCA, FSC, ASIC, CySEC, DFSA | USD 5 | Visit Broker |
| 🥉 |  | Read Review | CySEC, MISA, FSCA | USD 25 | Visit Broker |
| 4 |  | Read Review | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | USD 200 | Visit Broker |
| 5 |  | Read Review | ASIC, FCA, CySEC, SCB | USD 100 | Visit Broker |
| 6 |  | Read Review | FCA, FSCA, FSC, CMA | USD 200 | Visit Broker |
| 7 |  | Read Review | BVI FSC | USD 1 | Visit Broker |
| 8 |  | Read Review | CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA | USD 10 | Visit Broker |
| 9 |  | Read Review | ASIC, CySEC, FSCA, CMA | USD 100 | Visit Broker |
| 10 |  | Read Review | IFSC, FSCA, ASIC, CySEC | USD 1 | Visit Broker |
Tariff Concerns Ease
On Thursday, U.S. President Donald Trump instructed his economic team to calculate reciprocal tariffs to match those imposed by other countries and counter non-tariff trade barriers. These studies could take several weeks to complete, reducing immediate market fears.
The peso maintained its weekly upward trend, supported by a declining dollar and reduced concerns over potential tariff hikes. Market sentiment suggests that Trump’s trade measures are more of a political maneuver than an immediate economic threat, leading investors to reassess their expectations.
Weekly Performance
The peso saw a strong recovery over the week. Having started at 20.5450 pesos per dollar last Friday, it gained 24.10 cents, or 1.17%.
At the same time, the weakening U.S. dollar reflected broader market sentiment that Trump’s tariff strategy could allow the Federal Reserve to continue focusing on reducing inflation, potentially paving the way for interest rate cuts this year. The Dollar Index dropped 1.23% over the week.
With information spreading rapidly, traders are increasingly focusing on strategic planning around high-impact scheduled events rather than reacting impulsively to Trump’s policy moves.
ABOUT THE AUTHOR
See More
Add 3442
Related Posts
Add 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals
Top Broker