Mexican Peso Rises at the Start of the Week Amid Dollar Weakness
Commerce Secretary Howard Lutnick said the August 1 date is a “firm deadline” for countries to begin paying tariffs.
Quick overview
- The Mexican peso appreciated against the U.S. dollar, closing at 18.6617 pesos per dollar, a gain of 0.37%.
- The U.S. Dollar Index dropped 0.60% as markets focused on upcoming U.S. trade negotiations and new tariffs set to take effect on August 1.
- U.S. Treasury Secretary emphasized the importance of quality trade agreements, while the Commerce Secretary confirmed the August 1 deadline for tariffs.
- Traders in Mexico are preparing for a week of significant economic data releases, including the Global Economic Activity Index and the National Consumer Price Index.
The Mexican peso appreciated against the U.S. dollar on Monday, supported by a weaker greenback as markets remained focused on developments in U.S. trade negotiations just days before new tariffs are set to take effect.
The exchange rate closed the session at 18.6617 pesos per dollar. Compared to Friday’s official closing level of 18.7312, the peso gained 6.95 centavos, or 0.37%.
The dollar traded in a range between a high of 18.7375 and a low of 18.6251 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, dropped 0.60% to 97.87.
Countdown to U.S. Tariffs
U.S. Treasury Secretary Scott Bessent stated Monday that the Trump administration prioritizes the quality of trade agreements over strict timelines, ahead of the August 1 deadline for implementing new tariffs on multiple countries.
Commerce Secretary Howard Lutnick said the August 1 date is a “firm deadline” for countries to begin paying tariffs, though he clarified that nothing prevents further proposals after the measures take effect.
The dollar’s decline was broadly felt, with many emerging-market currencies benefiting. The European Union is reportedly preparing a contingency plan in case negotiations break down, while Bessent told reporters that talks with China are “on the right track.”
Investors continue to assess whether the tariff threats from the Trump administration are simply a negotiation tactic ahead of the potential implementation on Friday, August 1.
Busy Week for Local Economic Data
Domestically, traders are bracing for a week of key economic indicators. On Tuesday, Mexico’s Global Economic Activity Index (IGAE) for May will be released, followed by the National Consumer Price Index (INPC) for the first half of July on Thursday.
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