Puerto Vallarta, Mexico – The Mexican peso weakened on Wednesday morning, extending its losses as investors awaited further developments on U.S. President Donald Trump’s tariff plans. The local currency traded at 20.5224 pesos per dollar, down from Tuesday’s official close of 20.4568 pesos, according to data from the Bank of Mexico (Banxico). That represents a depreciation of 6.56 centavos for the peso, or about 0.32 percent.
The dollar traded in a range between a high of 20.5189 pesos and a low of 20.4263 pesos on Wednesday. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, rose 0.22 percent to 106.52 points.
The peso’s weakness follows comments made earlier this week by President Trump, who reiterated plans to implement tariffs on goods from both Canada and Mexico. The tariffs, which were initially suspended for 30 days, are set to take effect on Tuesday, March 4 unless a last-minute deal is reached.
Mexican President Claudia Sheinbaum expressed optimism about avoiding the trade measures. “We hope to reach an agreement with President Trump to ensure the tariffs do not come into effect,” she said. Economists warn that imposing new tariffs could trigger a broader trade dispute between the United States and Mexico, weighing further on the peso.
“The peso remains stable and shows a lateral behavior, with participants awaiting news about the possible imposition of 25% tariffs by the United States on imports from Mexico and Canada,” Banco Base wrote in a research note. The bank also cautioned that “news indicating a greater probability of imposition would push the exchange rate towards 20.80.”
Traders and analysts will be closely watching any announcements from both governments over the next few days, as the approaching March 4 deadline could intensify financial market volatility and press the peso further.
