Puerto Vallarta, Mexico – The Mexican peso depreciated sharply on Monday, mirroring turmoil in global markets as investor concern deepened about a potential worldwide economic recession. The slide follows sweeping tariffs announced last week by U.S. President Donald Trump, which sparked renewed volatility across major financial centers.
By midday, the peso had fallen around 1.35% against Friday’s LSEG reference price to trade at 20.6940 per dollar, marking its worst one-day percentage drop since June of last year. Earlier in the session, the currency slumped to 20.8046, a level not seen since early March.
“Investors remain vigilant about potential negotiations on reciprocal tariffs, as the potential for a global economic recession increases,” Monex Grupo Financiero said in a note to clients.
The peso, which has been among the worst performers within a basket of global currencies, has been highly sensitive to any sign of deteriorating U.S.-Mexico trade relations. With market participants bracing for further announcements on tariffs, analysts warn the currency could face more volatility in the coming days.
Monday’s market sell-off, dubbed another “Black Monday” for overseas indices, underscores the growing anxiety over trade disputes and the resilience of global growth. Economists and policymakers worldwide remain wary of continued market disruptions if no resolution on trade is reached soon.
