Puerto Vallarta, Mexico – After enduring three consecutive days of losses, the Mexican peso is showing signs of recovery on Monday morning as investors closely monitor developments in U.S. President Donald Trump’s trade policy.
According to official data from the Bank of Mexico (Banxico), the spot exchange rate currently stands at 20.1389 pesos per dollar. This marks an increase of approximately 10.16 cents, or 0.50 percent, compared to Friday’s closing rate of 20.2405 pesos. The dollar is trading within a narrow range, fluctuating between a high of 20.2395 and a low of 20.1016 pesos.
Meanwhile, the Intercontinental Exchange’s Dollar Index (DXY), which measures the greenback against a basket of six major currencies, experienced a modest rise of 0.17% to 104.27.
The peso’s recovery comes as market participants remain cautious amid ongoing uncertainties surrounding U.S. trade policy. Over the weekend, President Trump hinted at the possibility of engaging in dialogue with China regarding its tariffs. Additionally, media reports—such as those from The Wall Street Journal—suggest that certain tariffs on specific sectors might be excluded if reciprocal tariffs are enacted on April 2.
In related economic news, recent data revealed that Mexico’s headline inflation rate for the first half of March was 3.67% on an annual basis, coming in slightly below forecasts. Notably, inflation has remained within Banxico’s target range for six consecutive fortnights, adding a measure of stability to the economic outlook.
Market analysts are now turning their attention to the upcoming monetary policy decision by Banxico, scheduled for Thursday. Analysts from Banorte expect the central bank to implement a 50 basis point cut in the benchmark rate, lowering it to 9%—a move consistent with prevailing consensus views.
With trade policy uncertainties and central bank moves on the horizon, market watchers anticipate that currency movements will continue to reflect investor sentiment around both domestic and international economic developments. As the situation evolves, the peso’s performance will likely be influenced by further policy announcements and economic data in the coming days.
