Puerto Vallarta, Mexico – The Mexican peso declined against the US dollar on Monday, extending its losses for a second consecutive day. Heightened concerns over US President Donald Trump’s recent tariffs—coupled with the fear that these measures could spark stagflation—drove traders to adopt a more risk-averse stance.
According to data from the Bank of Mexico (Banxico), the peso closed at 20.6889 pesos per dollar, representing a depreciation of 1.09% or 22.39 cents. It was the currency’s worst performance since March 4, when it ended the session at 20.7431 pesos per dollar.
In just two trading days, the peso has accumulated a depreciation of 3.74%. Market uncertainty deepened over the weekend when the White House moved forward with the 10% general tariffs on all imports from the United States, effective Saturday, April 5.
Broader Currency Landscape
The Intercontinental Exchange’s Dollar Index (DXY), which measures the greenback’s performance against a basket of six major currencies, rose 1.37% to 103.47 points over the past two days. Several currencies have faltered in this environment.
Among the biggest losers since Friday:
- Norwegian krone: –6.33%
- Australian dollar: –5.66%
- Colombian peso: –5.62%
- South African rand: –4.80%
- Chilean peso: –4.19%
- Mexican peso: –3.74%
- Russian ruble: –2.43%
Meanwhile, the few currencies that have appreciated include the Japanese yen (+1.32%), Danish krone (+1.30%), Canadian dollar (+1.03%), and Swiss franc (+0.12%).
Analysts’ Take
“The peso’s depreciation is due to the continued risk aversion in the financial market, as the 10% general tariffs on all imports from the United States went into effect on Saturday,” said Gabriela Siller, director of analysis at Banco Base. She added that President Trump has shown no signs of easing his stance, pointing to recent social media messages in which he highlighted falling interest rates, oil, and food prices, while threatening further tariffs on Chinese goods.
From a technical perspective, Siller noted that the peso has been facing upward pressure, frequently surpassing the 20.50 pesos-per-dollar level for the first time since February. She warned that further risk aversion could push the currency toward its yearly high of 21.29 pesos per dollar.
“The peso faced another challenging session amid an increasingly uncertain and tense international environment,” said Felipe Mendoza, Financial Markets Analyst at ATFX LATAM. He pointed to additional turbulence coming from rumors of a temporary 90-day pause on tariffs—excluding China—floated by White House advisor Kevin Hassett, which were later denied. Rather than backing down, the US president hardened his stance, warning of additional 50% tariffs on Chinese products if Beijing fails to reverse its 34% tariff increase by April 8.
Experts at Monex Casa de Bolsa shared a similarly cautious outlook, predicting that the peso would likely fluctuate between 20.56 and 20.78 pesos overnight, given renewed uncertainty about tariff developments and their knock-on effects for the global economy.
