Mexican Peso Falls as Trump Threatens China
After closing at 18.3935 per dollar last Friday, today’s level implies a 14.89-cent depreciation, equivalent to 0.81%.
Quick overview
- The Mexican peso depreciated against the U.S. dollar, closing at 18.5424 pesos per dollar, a drop of 0.85%.
- This decline was influenced by heightened risk aversion following President Trump's tariff threats on China.
- The peso's performance was further impacted by weak industrial production figures in Mexico.
- For the week, the peso experienced a moderate loss of 0.81% compared to the previous Friday.
The Mexican peso fell against the U.S. dollar on Friday, pressured by a surge in risk aversion after U.S. President Donald Trump threatened to raise tariffs on China.
The exchange rate closed the session at 18.5424 pesos per dollar, compared to 18.3855 yesterday, according to official data from the Bank of Mexico (Banxico). This represented a depreciation of 15.69 centavos, or 0.85%, for the peso.
During the day, the dollar traded between a high of 18.6054 and a low of 18.3640 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against six major currencies, fell 0.45% to 98.95.
Trump said there was no reason to meet with Chinese President Xi Jinping in South Korea in two weeks as previously planned. He added on Truth Social that a “massive tariff increase” on China was being considered.
His comments came in response to China’s decision to impose export controls on critical rare earth minerals. “Depending on what China says about the hostile ‘order’ it just issued, I will have to counter their action,” he warned.
The session had been calm earlier, with traders parsing comments from Federal Reserve officials in search of guidance in a market lacking official economic data due to the ongoing U.S. federal government shutdown, now in its 10th day.
On the domestic front, sentiment was hurt by weak industrial production figures. Industrial activity unexpectedly fell in August for the third consecutive month, dragged down by declines in mining and construction, according to seasonally adjusted data.
For the week, the peso posted a moderate loss. After closing at 18.3935 per dollar last Friday, today’s level implies a 14.89-cent depreciation, equivalent to 0.81%.
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