Mexican Peso Closes Higher After Hitting Its Strongest Level Since October

From a technical standpoint, the exchange rate has hovered around the 19.20 level. However, it has struggled to break below this level.

Written by: Ignacio Teson • Wednesday, June 4, 2025 • 1 min read

• Last updated: Wednesday, June 4, 2025

Quick overview

The Mexican peso strengthened against the U.S. dollar, closing at 19.1997 pesos per dollar amid broad dollar weakness.
The peso gained 3.51 centavos, or 0.18%, as trade concerns related to U.S. tariffs on aluminum and steel heightened market uncertainty.
The U.S. Dollar Index fell 0.43% to 98.82 points, contributing to the peso's advance to levels not seen since early October.
Analysts suggest the exchange rate could test the 19.00 mark if the dollar continues to weaken, although it remains within a consolidation zone.

The Mexican peso strengthened against the U.S. dollar on Wednesday, benefiting from broad dollar weakness amid mounting trade concerns sparked by U.S. President Donald Trump’s policies.

The exchange rate ended the session at 19.1997 pesos per dollar. Compared to Tuesday’s official closing rate of 19.2348, according to data from Mexico’s central bank (Banxico), the peso posted a gain of 3.51 centavos, or 0.18%.

During the day, the dollar traded in a range between a high of 19.4000 pesos and a low of 19.1112. Meanwhile, the U.S. Dollar Index (DXY)—which measures the greenback against a basket of six major currencies—fell 0.43% to 98.82 points.

USD/MXN

Dollar Weakness Supports the Peso

The peso advanced to levels not seen since early October, as the dollar lost ground due to ongoing trade tensions between the U.S. and China. In a move that heightened market uncertainty, the Trump administration announced it was doubling tariffs on aluminum and steel to 50%.

The session was broadly positive for the peso, albeit with lower volatility. Analysts noted that the exchange rate could continue testing the 19.00 mark if the dollar weakens further, although it currently remains within a consolidation zone.

President Trump emphasized the challenges of reaching a trade deal with China, while Beijing called on Washington to steer the relationship “in the right direction.” Trump had earlier said he expected his counterparts to present their “best offers” during the day.

Technical Perspective

From a technical standpoint, the exchange rate has hovered around the 19.20 level. However, it has struggled to break below this level decisively, suggesting that it remains an attractive area for hedging activity.

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ABOUT THE AUTHOR See More

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.