Mexican Peso Gains as Trump Stays Silent on Tariffs
His speech reinforced campaign promises, including prioritizing American production, taxing foreign goods, and a tougher stance on drugs.
The Mexican peso strengthened in a highly volatile session, marked by Donald Trump’s inauguration as President of the United States.
On Monday, the peso closed higher, benefiting from a session of wide swings influenced by Trump’s swearing-in and the lack of new announcements on tariffs.
The exchange rate ended the session at 20.5180 pesos per dollar, according to official data from the Bank of Mexico (Banxico). Compared to Friday’s close of 20.7753 pesos, this represented a gain of 25.73 cents or 1.24%. The USD/MXN fluctuated within a range, reaching a high of 20.8869 pesos and a low of 20.4404 pesos.
Meanwhile, the U.S. Dollar Index (DXY) from the Intercontinental Exchange, which compares the dollar against six major currencies, dropped 1.16% to 108.08 points.
Cautious Market
Donald Trump was inaugurated as the 47th President of the United States on Monday. His speech reinforced key campaign promises, including prioritizing American production, taxing foreign goods, and adopting a tougher stance on drug trafficking.
The peso hit its highest level of the session at the market’s opening as traders prepared for Trump’s remarks. However, speculation that no significant announcements would be made—which was later confirmed—helped bolster the peso’s performance.
His speech aligned closely with the themes he has emphasized since his campaign, which explains the market’s muted reaction. The market is remaining quite cautious.
Highlights and Outlook
Adding to the session’s volatility, The Wall Street Journal published a report stating that Trump, in a memo, instructed federal agencies to review trade policies but made no mention of imposing tariffs.
The publication caused the dollar to drop from 20.89 to 20.44 pesos. Later, when Trump announced plans to declare a national emergency at the U.S.-Mexico border and reiterated his intent to label drug cartels as terrorists, the dollar rebounded to 20.70 pesos
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