Mexican Peso Starts the Week Down 1.17% Amid Strengthening of the Dollar

Meanwhile, other economies are still negotiating with the U.S. ahead of the August 1 deadline set by Trump for additional tariffs.

Written by: Ignacio Teson • Monday, July 28, 2025 • 1 min read

• Last updated: Monday, July 28, 2025

Quick overview

The Mexican peso depreciated against the U.S. dollar, closing at 18.7634 pesos per dollar, a decline of 1.17%.
This decline was influenced by a new trade agreement between the U.S. and the EU, which strengthened the dollar.
Markets are anticipating a volatile week with significant U.S. economic data and the Federal Reserve's monetary policy decision on the horizon.
Analysts noted that the peso faced short-term resistance at the 18.75 level, with a key threshold at 18.93.

The Mexican peso lost ground against the U.S. dollar on Monday, starting the week with a sharp decline as markets reacted to the announcement of a new trade agreement between the United States and the European Union.

The exchange rate closed the session at 18.7634 pesos per dollar. Compared to Friday’s official close of 18.5469 from the Bank of Mexico (Banxico), the move represented a depreciation of 21.65 centavos, or 1.17%, for the local currency.

The dollar traded in a range between a high of 18.7741 and a low of 18.5109 pesos. The U.S. Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, rose 1.07% to 98.69 points.

USD/MXN

Dollar Strength and Trade Optimism

U.S. President Donald Trump announced a tariff agreement with the European Union that sets a 15% rate on most EU goods while avoiding further conflict between allies that account for nearly one-third of global trade.

“The peso started the week under pressure due to the stronger dollar following the U.S.–EU deal,” analysts noted. The 18.75 level acted as short-term resistance, with the next key threshold seen at 18.93.

Busy Week Ahead

Markets are bracing for a volatile week marked by key U.S. economic data and the Federal Reserve’s upcoming monetary policy decision. In Mexico, second-quarter GDP figures are due.

Meanwhile, other economies are still negotiating with the U.S. ahead of the August 1 deadline set by Trump for additional tariffs. Several U.S. officials have stated there will be no further extensions.

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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.