Mexican Peso Declines Against the Dollar for Fifth Straight Day

The Mexican peso depreciated in a nervous market as the deadline for U.S. President Donald Trump’s tariffs approaches.

For the fifth consecutive session, the peso weakened against the dollar, reflecting heightened uncertainty as the implementation date for Trump’s reciprocal tariffs nears.

The exchange rate closed at 20.4604 pesos per dollar, compared to Friday’s closing level of 20.4169, according to official data from Mexico’s central bank (Banxico). This movement represented a loss of 4.35 cents, or 0.21%, for the peso.

During the session, the dollar traded within a range of 20.3321 to 20.4477 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, slipped 0.07% to 104.19 points.

Five Straight Days of Losses

Investors are bracing for “Liberation Day” on Wednesday, April 2, when Trump’s tariffs on U.S. trade partners take effect, including a 25% tariff on automobiles not manufactured in the United States.

Over this five-day losing streak, the peso has declined 40.17 cents, or 2%, from its official closing price of 20.0587 per dollar last Monday. The selloff is largely driven by concerns over Trump’s 25% tariff proposal on auto imports, which has fueled fears of a potential recession in Mexico.

Positive Month and Quarter

Despite recent losses, the peso strengthened in March, gaining 11.79 cents (0.57%) from its closing level of 20.5782 in February. In the first quarter of the year, the peso advanced 42.25 cents (2.02%) compared to its closing level of 20.8829 in December.

Like the peso, Latin American currencies also fell amid jitters over Trump’s tariffs. However, many managed to post gains in a strong first quarter for risk assets.

Markets entered the year with extreme volatility, driven by Trump’s repeated threats following his election victory. While investor anxiety remains, market prices have absorbed a significant portion of the initial pressure.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

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