Puerto Vallarta, Mexico – The Mexican peso strengthened to 19.1998 per dollar on Monday, driven by a weaker greenback after US tariff threats, along with domestic political uncertainty.
The peso climbed against the dollar in Monday trading, capitalizing on a softer greenback after US President Donald Trump renewed threats of higher tariffs and accused China of backtracking on a mineral trade deal.
By the close, the exchange rate stood at 19.1998 pesos per dollar—a gain of 19.59 cents, or 1.01 percent, compared with Friday’s 19.3957 figure, according to Banco de México (Banxico) data.
During the session, the dollar traded as high as 19.4348 pesos and dipped to 19.2015. Meanwhile, the ICE Dollar Index (DXY)—which tracks the US currency against six major rivals—fell 0.65 percent to 98.68 points.
On Friday, Trump warned he would double steel and aluminum tariffs to 50 percent, accusing China of failing to uphold a pact to reduce tariffs and trade barriers on critical minerals. That stance weighed on the greenback and bolstered other currencies, including the peso.
“Entering June, the peso is testing support around 19.20 as the dollar weakens,” said financial consultant Juan Carlos Cruz Tapia. “Several brokerage houses believe the dollar could slide to levels not seen since the early pandemic, possibly hitting 19 pesos.”
Domestically, markets also absorbed Mexico’s inaugural elections for judicial appointments—a process introduced by the previous government that has stirred uncertainty. Investors are now watching for the final vote tally.
Separately, Banxico’s latest survey of private-sector economists showed that year-end projections for the policy rate rose to 7.50 percent from a prior 7.75 percent expectation, implying total cuts of 100 basis points over the remainder of the year.
