Puerto Vallarta, Mexico – The Mexican peso fell 0.44% against the U.S. dollar on Friday, closing at 19.3957 pesos per dollar, driven by renewed global trade concerns and uncertainty ahead of Mexico’s first-ever judicial elections. The currency’s weekly slide contrasted with a robust monthly gain.
During the session, the peso traded within a band stretching from 19.2579 to 19.3355 per dollar. Meanwhile, the U.S. Dollar Index (DXY) – which measures the greenback’s strength versus six major currencies – held steady at 99.34 points. Market participants noted the dollar’s resilience, even as other currencies showed volatility.
U.S.–China trade frictions resurfaced as President Donald Trump accused Beijing of backtracking on a tariff-reduction agreement. The claim came amid stalled negotiations and chipped away at investor confidence. Traders said the renewed tensions underscored fragile U.S.–China ties.
Sentiment worsened after a U.S. appeals court late Thursday reinstated the majority of Trump’s tariffs, overturning a lower trade court’s suspension order issued Wednesday. The ruling forced market participants to weigh the impact of potential tariff enforcement on cross-border commerce and emerging-market currencies.
Domestically, investors turned their focus to Sunday’s landmark judicial elections. More than 5,000 candidates are vying for upwards of 840 posts, including seats on the Supreme Court of Justice. Analysts expect heightened volatility as voters enter the polls for the first time to select magistrates at federal and state levels.
Analysts forecast the peso will remain volatile in the coming sessions, with an expected trading range between 19.33 and 19.52 per dollar overnight. They cautioned that market players will weigh the jury’s verdict from U.S.–China trade news against the outcome of the judicial vote.
This week, the peso hit its weakest level since early October at 19.1815 per dollar on Wednesday, extending a roller-coaster run. From last Friday’s close of 19.2398, the currency lost 15.59 centavos, marking a weekly decline of 0.81%. Traders said technical selling compounded sentiment amid thin pre-election liquidity.
Despite the recent pullback, the peso booked a strong performance in May. The currency appreciated 21.79 centavos, or 1.11%, compared with its April closing rate of 19.6136 per dollar. Market watchers attributed the gain to easing global trade risks and fresh trade pacts between the U.S. and partner nations.
Looking ahead, the peso’s path will hinge on developments on both sides of the Pacific and the verdict at the ballot box. A firm dollar or a messy election outcome could further unsettle the currency, while any easing of trade strains or clear electoral results may offer relief. Traders remain on guard as they enter a week loaded with political and economic catalysts.
Puerto Vallarta, Mexico - The Mexican peso fell 0.44% against the U.S. dollar on Friday, closing at 19.3957 pesos per dollar, driven . . .
