Mexican Peso Falls on Trump Concerns
The Mexican peso depreciated after four consecutive sessions of gains, pressured by market concerns over the potential impact of U.S. President Donald Trump’s policies.
The exchange rate closed at 20.3623 pesos per dollar, down from 20.2672 on Friday, according to data from the Bank of Mexico (Banxico). This represents a 0.47% loss or 9.51 centavos for the peso.
During the session, the dollar fluctuated between a high of 20.3964 and a low of 20.1814. Meanwhile, the U.S. Dollar Index (DXY), which tracks the greenback against six major currencies, edged up 0.09% to 103.93 points.
Trump Uncertainty Weighs on Markets
In an interview on Sunday, Trump declined to predict whether a U.S. recession is likely this year. “We’re in a transition period because what we’re doing is massive. We’re bringing wealth back to the United States,” he stated.
Federal Reserve Chairman Jerome Powell reaffirmed on Friday that the central bank will not rush to cut interest rates, waiting for more clarity on the economic impact of the administration’s trade policies.
Markets remain focused on slowing U.S. economic growth and lingering tariff risks, especially with an early review of the USMCA (Mexico-U.S.-Canada Agreement) approaching.
Tariff Tensions Remain
Trump extended a one-month tariff exemption for USMCA-covered products until April 2, but new tariffs on steel and aluminum are set to take effect in two days.
U.S. Commerce Secretary Howard Lutnick stated Sunday that Trump will maintain pressure on Mexico, Canada, and China, demanding tougher measures to curb fentanyl trafficking into the U.S.
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