Puerto Vallarta, Mexico – The Mexican peso depreciated for the fifth consecutive day, closing at 20.4604 per U.S. dollar, as investor anxiety mounts ahead of U.S. President Donald Trump’s reciprocal tariffs. The recent decline reflects growing uncertainty in the market as the deadline for the new tariffs draws near.
According to official data from the Bank of Mexico (Banxico), the peso fell by 4.35 cents—or 0.21 percent—from yesterday’s close of 20.4169 per dollar. Intraday trading saw the greenback fluctuate between a high of 20.4477 and a low of 20.3321, further underscoring the volatile environment.
The broader currency market is also monitoring the performance of the U.S. dollar. The Intercontinental Exchange’s Dollar Index (DXY), which tracks the greenback against a basket of six benchmark currencies, slightly retreated by 0.07% to settle at 104.19 points.
Investors remain particularly cautious as “Liberation Day” approaches this Wednesday. On that day, President Trump’s tariffs—which include a contentious 25% charge on automobiles not manufactured in the United States—are set to be implemented. This looming measure has spurred fears of a potential economic downturn in Mexico.
Over the past week, the peso has experienced a cumulative drop of 40.17 cents from its level of 20.0587 at the beginning of the week, marking an approximate 2 percent depreciation. “The move is due to the uncertainty generated by Donald Trump and his proposed 25% tariff on automotive imports. This measure has intensified fears of a recession in Mexico,” explained Antonio Di Giacomo, LATAM technical analyst at XS.
Market participants are now bracing for further volatility, with the peso’s future performance likely to hinge on developments in U.S. trade policy and its broader impact on the Mexican economy.
Puerto Vallarta, Mexico - The Mexican peso depreciated for the fifth consecutive day, closing at 20.4604 per U.S. dollar, as investor anxiety mounts . . .
