Puerto Vallarta, Mexico – The Mexican peso continued its advance against the dollar on Monday morning, building on four consecutive days of gains amid cautious trading and ongoing uncertainty around U.S. policy measures.
According to the Bank of Mexico (Banxico), the local currency traded at 20.2299 pesos per dollar in early action, compared with Friday’s official close of 20.2672. This represents a gain of 3.73 cents, or 0.18%, for the peso so far. The dollar/peso pair saw a trading range between 20.3008 and 20.1814 in morning transactions.
Meanwhile, the U.S. Dollar Index (DXY), which compares the dollar to a basket of six major currencies, declined 0.07% to 103.77 units, offering the peso additional support.
Market participants anticipate a busy week of economic indicators in the United States, including a closely watched inflation report due on Thursday. While traders weigh these upcoming figures, Federal Reserve Chairman Jerome Powell’s recent comments have added a note of caution; on Friday, he cited a lack of clarity regarding the effects of U.S. President Donald Trump’s policies on growth.
“The Mexican peso is favored by a decline in the dollar after evaluating a speech by U.S. President Donald Trump and considering a possible lower dynamism of the economy of his country in the short term,” Monex Grupo Financiero said in a note on Monday.
President Trump has exempted products included under the United States-Mexico-Canada Agreement (USMCA) from tariffs for one month, until April 2. However, tariffs on steel and aluminum are expected to take effect on Wednesday. Over the weekend, U.S. Commerce Secretary Howard Lutnick reiterated that the administration’s hard line on tariffs—aimed at curbing fentanyl trafficking and unauthorized migration—would continue, suggesting few signs of near-term policy relief for Mexico, Canada, and China.
Despite trade policy headwinds, the Mexican peso’s resilience, bolstered by a softer dollar, sets a cautious but positive tone for the country’s currency at the start of the week. All eyes now turn to U.S. inflation data and further commentary from the Federal Reserve, which could shape market sentiment and influence the peso’s trajectory in the coming days.
