The Mexican peso is under pressure, approaching 20 per dollar, due to concerns about Donald Trump

The Mexican peso depreciated against the U.S. dollar at the start of the week, driven by the greenback’s strength amid speculation that Donald Trump could win the upcoming U.S. elections in November.

The exchange rate closed the session at 19.9758 pesos per dollar, compared to 19.8860 on Friday, according to official data from the Bank of Mexico (Banxico). This represents a loss of 8.98 cents for the local currency, equivalent to a 0.45% decline.

The dollar traded within a range, reaching a high of 20.0746 and a low of 19.8685 pesos. Meanwhile, the U.S. Dollar Index (DXY), which tracks the dollar against a basket of six major currencies, rose by 0.47% to 103.98 points.

Republican candidate Donald Trump, who is locked in a tight race against Democratic Vice President Kamala Harris, reiterated last week his pledge to impose tariffs if elected. Such measures would pose a significant challenge for Mexico’s economy.

The peso’s performance extended Friday’s trend, and the exchange rate reached 20.07 at the start of the week. Further volatility is not ruled out as the U.S. elections approach and the DXY continues to strengthen.

For the remainder of the week, local traders will closely monitor key economic data, including mid-October inflation figures on Tuesday, August’s economic activity index (IGAE) on Wednesday, and August’s retail sales report on Thursday.

Globally, investors will stay focused on the U.S. presidential race and economic indicators. Additionally, comments from Federal Reserve (Fed) officials could provide further clarity on the interest rate outlook for the rest of the year.

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ABOUT THE AUTHOR See More
Ignacio Teson
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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