Mexican Peso Rebounds After Trump’s Comments
On a day of ups and downs, the local currency gained ground following remarks from U.S. President Donald Trump, which raised hopes for a tariff delay.
The Mexican peso appreciated against the dollar in Wednesday’s trading. After a volatile session, the local currency strengthened following comments from U.S. President Donald Trump, fueling optimism for another tariff postponement.
The exchange rate closed at 20.4268 pesos per dollar, compared to 20.4568 pesos the previous day, according to official data from the Bank of Mexico (Banxico). This movement represented a modest recovery of 3 cents or 0.15%.
The dollar traded within a range, hitting a high of 20.5479 and a low of 20.2865. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, rose 0.19% to 106.49 points.
Trump Eases Market Jitters
On Wednesday, Donald Trump raised hopes for another pause in new tariffs on imports from Mexico and Canada. The former president stated that the tariffs would take effect on April 2, nearly a month after the initial deadline set for next Tuesday.
However, a White House official clarified that the March 4 deadline for tariffs on Mexican and Canadian goods remained in place for now, pending a review of measures to curb migrant flows and fentanyl trafficking.
The ‘Trump effect’ is once again being felt after the exchange rate hovered around 20.50 per dollar for most of the session. Trump’s comments have eased market concerns ahead of next week.
Markets Await Further Clarity
While regional currencies regained ground, the dollar rebounded from an 11-week low, and U.S. Treasury yields recovered from recent declines. Investors are now awaiting key inflation data from the Federal Reserve, set to be released on Friday.
Everything revolves around speculation over tariffs—whether they will be implemented or postponed again. Looking ahead, the exchange rate is expected to remain stable, hovering around 20.25 per dollar.
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