Mexican Peso Weakens but Ends February with Gains
The Mexican peso depreciated against the U.S. dollar on Friday, as markets remained focused on negotiations to prevent the implementation of a 25% U.S. tariff on Mexican imports set to take effect on Tuesday.
The exchange rate closed at 20.5782 pesos per dollar, down from 20.4687 pesos the previous day, according to official data from the Bank of Mexico (Banxico). This represents a loss of 10.95 centavos or 0.54%.
The dollar traded within a range of 20.3751 to 20.6422 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against six major currencies, rose 0.32% to 107.63 points.
Markets Await a Deal
U.S. President Donald Trump confirmed this week that tariffs on Mexico and Canada will take effect on March 4. Mexican government officials are in talks with their U.S. counterparts in an effort to reach a new agreement.
Despite Friday’s depreciation, the peso ended February with a slight gain. Compared to its January close at 20.6871 pesos per dollar, the currency strengthened by 1.89 centavos, or 0.53%.
Overall, investors continue to view Trump’s tariff strategy as a negotiation tool, with many expecting a potential deal that could delay its implementation.
Economic Indicators
On the economic front, U.S. data released today showed that the Personal Consumption Expenditures (PCE) Price Index—a key inflation gauge—rose 2.5% year-over-year and 0.3% monthly in January, in line with analyst expectations.
This data is significant as the Federal Reserve uses it to guide monetary policy decisions. Recent Fed minutes indicated a consensus among officials to maintain a restrictive stance.
Next week, market focus will shift to the release of U.S. nonfarm payroll data on Friday, a key factor for the Fed’s dual mandate of full employment and inflation control. Meanwhile, Mexico is set to release its February inflation report.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals