Mexican Peso Recovers Ground After Its Worst Drop in Seven Months
The rebound came after the peso lost more than 2% yesterday, reacting to brief trade tensions between Colombia and the United States.
The Mexican peso appreciated during Tuesday’s trading session, recovering ground after recording its steepest drop in seven months yesterday. Investors are now looking ahead to the first Federal Reserve (Fed) monetary policy announcement of the year, scheduled for tomorrow.
The exchange rate closed the session at 20.5402 pesos per dollar. Compared to yesterday’s rate of 20.7278 pesos, based on official data from Banco de México (Banxico), this represented a gain of 18.76 cents, equivalent to an appreciation of 0.91%.
The dollar traded within a range of 20.7831 pesos at its peak and 20.5223 pesos at its low. Meanwhile, the U.S. Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against a basket of six major currencies, rose 0.50% to 107.88 points.
Mexican Peso Performance
The peso’s rebound followed yesterday’s loss of over 2%, spurred by market concerns over renewed trade tensions between Colombia and the United States. Over the weekend, these tensions reignited fears of Donald Trump’s tariff policies. According to the Financial Times, Trump’s Treasury Secretary nominee, Scott Bessent, has reportedly been pushing for universal tariffs on all U.S. imports, starting at 2.5% and increasing monthly.
Technical Outlook
Concerns over Trump-era tariffs are mounting. The peso remains under pressure from recent events and anticipation of tomorrow’s Fed decision, which could push the currency toward the intermediate support zone of 20.45–20.40 pesos.
Locally, investors are gearing up for Thursday’s release of Mexico’s fourth-quarter Gross Domestic Product (GDP) data. This figure is expected to carry significant weight, particularly as the United States plans to implement a 25% tariff on Mexican goods starting next month.

