Mexican Peso Gains Relief Against the Dollar as U.S. Pauses Tariffs
On Monday afternoon, the Mexican peso was trading at 20.4133 per U.S. dollar in electronic transactions.
This came after U.S. President Donald Trump announced a one-month pause on tariffs against Mexico following his conversation earlier in the day with his Mexican counterpart, Claudia Sheinbaum.
Mexico’s financial markets are closed this Monday due to a holiday marking the anniversary of the 1917 Constitution.
Compared to the official closing rate of 20.6871 pesos per dollar from the Bank of Mexico (Banxico) on Friday, the peso has appreciated by 1.32% or 27 cents.
Tariff will be Paused for One Month but…
On Sunday, following the White House announcement that tariffs would take effect on Tuesday, February 4, the exchange rate in Asian markets surged to 21.1735 pesos per dollar—a depreciation of 2.35% or 48.68 cents.
Meanwhile, Mexican President Claudia Sheinbaum announced on social media platform X, and later in a press conference, that she had a “productive conversation” with Trump, during which they reached “a series of agreements.” Teams from both countries will now collaborate on two key areas: trade and security.
“Mexico will immediately deploy 10,000 National Guard troops to the northern border to curb drug trafficking into the United States, particularly fentanyl,” she stated.
At the same time, “the United States has committed to taking action to prevent the trafficking of high-powered weapons into Mexico,” she added.

