Mexican Peso Rises on Limited Tariff Impact
The Mexican peso appreciated against the dollar for a second consecutive session, driven by positive developments in trade negotiations with the U.S.
The exchange rate closed at 20.2657 pesos per dollar, improving 0.45% from 20.3568 in the previous session, according to Banxico data. The dollar traded between 20.5039 and 20.2135 during the day. Meanwhile, the U.S. Dollar Index (DXY) rose 0.24% to 104.07.
Tariff Exemptions Agreed
In a phone call, Mexican President Claudia Sheinbaum and U.S. President Donald Trump agreed to exempt all goods under the USMCA trade pact from tariffs until April 2.
The 25% tariffs on Mexican and Canadian goods entering the U.S. took effect Tuesday, alongside an additional 10% on Chinese imports. However, Trump announced a one-month exemption for automobiles, raising hopes for broader relief.
Market Uncertainty Over Trump’s Policy Shifts
A separate call between Trump and Canadian Prime Minister Justin Trudeau failed to yield progress, prompting Canada to seek WTO consultations on the tariffs.
Trump’s frequent policy shifts continue to unsettle markets, keeping investors on edge and fueling volatility.
Dollar Weakness
The U.S. dollar continues to decline against major currencies, allowing others, like the Mexican peso, to regain ground. Investors are assessing the potential economic impact of Trump’s trade policies.
The narrative around tariffs has shifted, with growing concerns that they may hinder U.S. economic growth.
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