Mexican Peso Dips as Traders Await Trump’s Clarity
The Mexican peso weakened slightly against the dollar on Tuesday, amid a directionless market awaiting clarity on U.S. President Donald Trump’s next steps regarding tariffs.
The exchange rate closed at 20.0700 pesos per dollar, compared to 20.0587 yesterday, according to data from the Bank of Mexico (Banxico). This represented a loss of 1.13 centavos or a marginal 0.06% for the peso.
The dollar fluctuated between a high of 20.1212 and a low of 19.9573. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, dipped 0.11% to 104.21 points.
Uncertainty Over Tariffs
On Monday, President Trump stated that not all the tariffs he has threatened against key trading partners will take effect on April 2, and that some countries might receive exemptions. Traders are now waiting for further clarity throughout the week.
Market Cautious Ahead of Banxico Decision
In local news, January’s retail sales report surpassed expectations, providing a brief positive note amid growing concerns that Mexico’s economy may be heading toward a technical recession.
Looking ahead, traders are awaiting Banxico’s monetary policy decision on Thursday. The market widely expects another half-percentage-point rate cut, following a similar move last month.
Mexico Stock Exchange
Meanwhile, Mexico’s benchmark S&P/BMV IPC index, which tracks the country’s most traded stocks, rose 1% to 53,201.53 points. The FTSE BIVA index, from the Institutional Stock Exchange (BIVA), gained 0.81% to 1,074.33 points.
Within the main index, most stocks traded higher. Industrias Peñoles led the gains, rising 4.04% to 366.95 pesos, followed by Quálitas, up 3.32% to 178.77 pesos, and Televisa, which climbed 2.71% to 7.20 pesos.
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