Puerto Vallarta, Mexico – The Mexican peso appreciated against the U.S. dollar on Monday morning, buoyed by a surge in demand for riskier assets after the White House announced exemptions on smartphones and computers from new tariffs. The local currency traded near the 20-peso mark, reflecting improved investor sentiment in the wake of these developments.
By mid-morning, the spot exchange rate stood at 20.0517 pesos to the dollar. This marks a significant gain compared to the Bank of Mexico’s (Banxico) official closing price of 20.2935 pesos on Friday—equivalent to an increase of 24.18 cents, or 1.19 percent. Trading fluctuated within a high of 20.2967 and a low of 20.0324 pesos per dollar.
Globally, the U.S. currency also showed signs of weakness, with the Intercontinental Exchange’s Dollar Index (DXY)—which measures the dollar against a basket of six major currencies—falling 0.43 percent to 99.67 points.
“The local and global exchange markets will continue to depend on the issue of Donald Trump’s tariffs, particularly if bilateral agreements are announced that allow for progress in reducing tariffs,” CIBanco stated in a note. Despite the peso’s strong performance among a basket of global currencies, analysts warned that uncertainty could persist as investors closely watch future trade developments.
Looking ahead, CIBanco estimates that the Mexican currency will trade within a range of 19.95 to 20.60 pesos per dollar this week, underscoring the ongoing impact that tariff policies and bilateral negotiations may have on foreign exchange markets.
