Mexican Peso Strengthens Amid Lack of Concrete Tariff Announcements

The local currency gained ground, supported by a pullback in the dollar, as investors took a breather amid the lack of concrete announcements from President Trump regarding tariffs.

The Mexican peso appreciated during midweek trading. The local currency advanced, supported by a decline in the dollar, as investors took a moment to relax given the absence of concrete announcements about President Donald Trump’s tariffs.

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The exchange rate closed the session at 20.4762 pesos per dollar, compared to 20.6457 pesos the previous day, according to official data from the Bank of Mexico (Banxico). This move represented a gain of 16.95 cents, or 0.82 percent.

USD/MXN

The dollar moved within a range, peaking at 20.6727 units and reaching a low of 20.4643. The MSCI Emerging Market Currency Index, which tracks a basket of emerging market currencies against the dollar, was up, reflecting reduced concern over these assets.

Today, the Mexican peso benefits from the dollar’s retreat, which has lost ground against emerging market currencies, driven by the absence of tariff decrees from Trump. This has created expectations for a more moderate trade stance.

Tariff Anouncements

Trump announced on Tuesday afternoon that his administration was considering imposing a 10% tariff on Chinese goods, in addition to a 25% tariff for Mexico and Canada. The Republican also promised tariffs on imports from the European Union.

According to a report from The Wall Street Journal, the U.S. president is also reportedly pushing for an early renegotiation of the United States-Mexico-Canada Agreement (USMCA), originally scheduled for a review in 2026.

Despite the threats, the lack of specific details about his plans allowed the peso to regain some ground, possibly moving towards 20.26, or even 20.10.

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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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