Mexican Peso Holds Strong Below 20 per Dollar
Despite the recent implementation of a 25% tariff on Mexican exports to the U.S., market sentiment remains optimistic about trade relations between the two countries.
Exports that comply with the USMCA (T-MEC) are exempt, encouraging companies to meet regional content and labor requirements.
The Mexican peso started the week resilient, trading below 20 per dollar in electronic markets, driven by speculation of stronger trade ties. However, on Monday, the currency saw a slight depreciation of 0.19% to 19.9444 per dollar, according to the Bank of Mexico’s (Banxico) official close, though it remains at its strongest level since November 7, 2024.
During the session, the exchange rate fluctuated between a low of 19.8667 and a high of 19.9710 per dollar.
So far in March, the peso has gained 3.08%, with a year-to-date appreciation of 4.49%. Additionally, recent U.S. inflation data showed a slowdown in consumer and producer prices for February, increasing the likelihood of Federal Reserve interest rate cuts in the coming months.
U.S. Dollar Weakens on Soft Consumer Data
The U.S. dollar started the week lower against major currencies such as the euro, British pound, and Swiss franc, weighed down by economic data that raised concerns about consumer strength and the Federal Reserve’s monetary policy outlook.
The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, fell 0.33% to 103.40 points. Among the most depreciated currencies were the Japanese yen (-0.42%), Turkish lira (-0.30%), Indonesian rupiah (-0.13%), Mexican peso (-0.19%), and Taiwanese dollar (-0.06%).
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