Puerto Vallarta, Mexico – The Mexican peso ended Tuesday’s trading session slightly weaker against the U.S. dollar, with investors and analysts closely monitoring market movements as uncertainty looms over U.S. President Donald Trump’s evolving trade strategy.
The local currency closed the day at 20.0700 per dollar, a marginal depreciation of 1.13 cents or approximately 0.06 percent from yesterday’s record of 20.0587, according to data from the Bank of Mexico (Banxico). Intraday, the peso fluctuated within a narrow range, reaching a high of 20.1212 and a low of 19.9573.
Across the Atlantic, the Intercontinental Exchange’s Dollar Index (DXY) experienced a modest decline, sliding 0.11% to 104.21 points. Despite the subdued movements, market participants remain on edge, awaiting further guidance on tariffs and exemptions following recent remarks from President Trump.
“Caution prevails regarding tariffs,” noted Monex analysts in a report released Tuesday. The analysts forecasted that after-hours trading might see the peso trading between 20.03 and 20.16 per dollar, reflecting the prevailing uncertainty in the market.
On the domestic front, the session received a boost from a better-than-expected January retail sales report. However, the figures come amid mounting concerns that Mexico’s economy could be edging towards a technical recession.
Looking ahead, market watchers are bracing for the Bank of Mexico’s upcoming monetary policy decision on Thursday. The consensus among local traders points to the likelihood of another half-point cut in the benchmark rate, echoing the move implemented last month.
As investors await further clarity on U.S. trade policy and the central bank’s next steps, the peso is expected to continue its cautious journey amidst an environment of mixed economic signals and policy uncertainty.
