Mexican Peso Gains Ground Against the Dollar After Volatile Week
The local currency recovered ground in a less uncertain global trade environment, while the United States remained focused on its trade efforts with China.
The Mexican peso appreciated on Friday, closing the week with a positive performance against the U.S. dollar. The local currency strengthened amid easing uncertainty in global trade, as the U.S. continued to center its trade efforts on China.
The exchange rate closed the day at 20.2935 pesos per dollar. Compared to Thursday’s official rate of 20.4396 from the Bank of Mexico (Banxico), this move represented a gain of 14.61 centavos, or 0.72%, for the peso.
The dollar traded in a range between a high of 20.6220 and a low of 20.2976 pesos. Meanwhile, the U.S. Dollar Index (DXY) from the Intercontinental Exchange—which measures the greenback against a basket of six major currencies—fell 1.02% to 99.92 points.
A Week Marked by Volatility
The trade dispute initiated by the United States has led to tariffs on Chinese goods climbing as high as 145%. In response, China raised its own tariffs to 125%. However, Washington’s suspension of global tariffs provided some relief to markets.
A reduced aversion to risk assets in the markets has allowed the peso to recover, after briefly exceeding 21 pesos per dollar earlier in the week. Compared to last Friday’s official close of 20.4650, the peso gained 17.15 centavos, or 0.84%, over the week.
Global financial markets have experienced sharp swings this week following announcements on tariffs from the U.S. and other countries, creating a highly complex trading environment.
Local Momentum for the Peso
On the domestic front, the market found support in strong industrial production data from Mexico, which showed a solid rebound. Industrial activity in the country rose 2.5% in February, according to INEGI. On an annual basis, that represents an increase of 0.4%.
This significant recovery in local industrial output helped ease some of the pressure on Mexico’s economic outlook, providing a boost in an atmosphere of caution and uncertainty.
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