Mexican Peso Gains 2.5% as Mexico Avoids U.S. Tariffs
The Mexican peso surged against the dollar on Thursday, benefiting from a weaker greenback and improved sentiment toward Mexican assets after the country was excluded from U.S. tariffs.
The exchange rate closed at 19.9434 pesos per dollar, marking a 2.50% gain from Wednesday’s official close of 20.4556, according to data from Banco de México (Banxico). This translated to an appreciation of 51.22 centavos.
Throughout the session, the dollar fluctuated between a high of 20.2825 and a low of 19.8430 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the currency against a basket of six major counterparts, fell 1.49% to 102.13.
Mexico Escapes Tariffs
On Wednesday, U.S. President Donald Trump announced higher-than-expected global tariffs, sparking fears of retaliatory measures, inflation spikes, and economic slowdown.
However, the Mexican peso strengthened after Mexico and Canada were exempted, thanks to the USMCA trade agreement. The Canadian dollar also saw gains following the announcement. Investors viewed this as positive news for Mexico, as it boosts the country’s trade opportunities.
Among affected economies, China will face a 54% net tariff on U.S. exports starting April 9, while the European Union will pay 20%, surpassing the 10% imposed on the UK. Markets remain watchful for potential retaliatory measures.
Sheinbaum Seeks More Agreements
Mexican President Claudia Sheinbaum welcomed the tariff exemption and reaffirmed the government’s commitment to ongoing negotiations with Washington to prevent additional duties, including those previously imposed on automobiles, steel, and aluminum.
Still, challenges remain. Trump has been a vocal critic of USMCA, calling it “the worst trade deal in U.S. history.” Analysts warn that the real risk now lies in next year’s scheduled review of the agreement by partner nations.
“Keeping the treaty intact is a major achievement,” said Economy Minister Marcelo Ebrard during Sheinbaum’s press conference. “In a new trade order driven by tariffs, maintaining a free trade agreement is extremely difficult.”
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