The Mexican Peso is losing ground after a week of strong gains and in a market that is once again concerned about future tariff announcements by US President Donald Trump.
The Mexican peso is depreciating against the U.S. dollar on Monday morning, ending a week of strong advances as market sentiment grows increasingly cautious following renewed tariff threats from U.S. President Donald Trump.
The peso is currently trading at 20.5478 per dollar, reflecting a 1.29% loss compared to Friday’s closing rate of 20.2856, according to data from the Bank of Mexico (Banxico). This equates to a drop of 26.22 cents for the peso, marking a significant shift after a week of strengthening.
The dollar is trading within a range of 20.3697 pesos at its lowest and 20.5716 pesos at its highest. Meanwhile, the Dollar Index (DXY), which measures the performance of the U.S. dollar against a basket of six major currencies, is down by 0.20%, standing at 107.22 units.
Trump’s Tariff Threats Add Pressure
On Sunday, President Trump announced plans to impose tariffs on Colombian imports in retaliation for Colombia’s refusal to allow two planes carrying deported migrants to land. Although the tariffs were not implemented due to an unresolved agreement, the announcement has added to market unease.
Trump has also reignited concerns over potential tariffs on Mexican goods. While this issue had faded from his rhetoric since his return to the White House, the re-emergence of tariff threats has shaken investor confidence, putting downward pressure on the peso.
“Today, the Mexican currency is under pressure following the announcement by U.S. President Donald Trump on the imposition of 25% tariffs on Colombia, in response to its rejection of the landing of two planes with deported migrants,” Monex, a Mexican financial services company, noted in a statement.
Awaiting Key Economic Data
Investors are also closely monitoring the release of critical economic data and decisions that could influence the peso’s performance further. The Federal Reserve (Fed) is expected to release key announcements this week, and on the domestic front, Mexico’s fourth-quarter Gross Domestic Product (GDP) figures will be highly anticipated.
The peso had demonstrated resilience last week, buoyed by the absence of tariff discussions in Trump’s recent speeches. However, the latest developments have renewed concerns about trade relations between the U.S. and Mexico, creating additional volatility in the currency market.
As markets await further clarity on U.S. policy and Mexico’s economic indicators, analysts expect the peso to remain under pressure. This week will be pivotal in determining whether Mexico’s currency can regain strength or face continued depreciation against the dollar.
The Mexican Peso is losing ground after a week of strong gains and in a market that is once again concerned about future tariff announcements by US President Donald Trump.
The Mexican peso is depreciating against the U.S. dollar on Monday morning, ending a week of strong advances as market sentiment grows increasingly cautious following renewed tariff threats from U.S. President Donald Trump.
