Mexican Peso Holds Steady After Breaking the 19-per-Dollar Barrier

Quick overview

The Mexican peso closed Thursday’s session nearly unchanged, following a cautious trading day driven by renewed tariff threats from former U.S. President Donald Trump against America’s trade partners.

The local currency ended at 18.9210 pesos per dollar, compared to 18.9224 in the previous session, according to official data from the Bank of Mexico (Banxico). The move represents a marginal gain of 0.01%, or less than one cent, for the peso.

This follows Wednesday’s notable break below the 19-per-dollar barrier for the first time since August.

During the day, the exchange rate fluctuated between a high of 18.9810 and a low of 18.8554. Meanwhile, the U.S. Dollar Index (DXY) — which measures the greenback against six major currencies — fell 0.78% to 97.87 points.

Trump’s Tariff Threats Fuel Market Uncertainty

Adding to market jitters, Trump once again threatened to impose tariffs on U.S. trading partners. He announced plans to send “take-it-or-leave-it” letters to world leaders in the coming weeks, warning that if no agreements are reached by July 8 or 9, tariffs would be enforced.

Analysts noted growing caution in the markets, not only due to trade tensions but also amid escalating conflict in the Middle East and uncertainty over the U.S.-China trade negotiations, despite the preliminary deal announced after meetings in London.

Mixed Signals from U.S. Data

Investor sentiment was further tempered by economic data. The U.S. Producer Price Index (PPI) rose 0.1% last month, slightly below analyst expectations of a 0.2% increase, following a 0.5% decline in April, according to the Bureau of Labor Statistics.

The lack of clarity surrounding trade developments, combined with geopolitical risks and mixed inflation data, has reignited concerns among market participants — keeping risk appetite in check and currency movements muted.

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.

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