Puerto Vallarta, Mexico – The Mexican peso depreciated against the U.S. dollar on Friday, rounding out a tough week for the local currency after official data confirmed an economic contraction in the last quarter of 2024.
According to the Bank of Mexico (Banxico), the peso closed at 20.4131 units per dollar, weakening from 20.3129 pesos the previous day. This represents a drop of 10.02 cents—equivalent to 0.49%. During Friday’s trading session, the currency oscillated between a high of 20.4282 and a low of 20.2918 pesos per dollar.
The performance of the peso mirrored movements in the broader market, with the Intercontinental Exchange Dollar Index (DXY)—which measures the dollar against a basket of six major currencies—edging up 0.24% to 106.62 units. The greenback’s relative strength partly reflected investor concerns following U.S. economic data showing near-stagnant business activity in February and a sharper-than-expected decline in consumer confidence.
On the domestic front, Mexico’s National Institute of Statistics and Geography (Inegi) reported that the country’s Gross Domestic Product (GDP) contracted by 0.6% in the fourth quarter of 2024, based on seasonally adjusted figures. For the full year of 2024, the economy grew a modest 1.20%, weighed down in particular by weakness in the agricultural sector.
Banxico’s latest quarterly report reinforced the subdued outlook, revealing it had lowered its 2025 GDP growth projection from 1.2% to 0.6%. The peso’s decline on Friday contributed to a weekly fall of 10.91 cents or 0.54%, compared to the exchange rate of 20.3040 pesos per dollar a week earlier.
In a note to clients, Vector Casa de Bolsa attributed the cautious sentiment to both domestic and external factors. “The economic outlook for 2025 is weak, with upward risks, particularly from the trade relationship with the United States and the need to maintain a public balance sheet significantly lower than that of 2024,” the firm said.
Market watchers will keep a close eye on upcoming economic releases and any further monetary policy signals from Banxico. The U.S. Federal Reserve’s policy stance and new data on consumer demand could also shape the peso’s trajectory in the coming weeks. For now, the Mexican currency remains under pressure amid concerns over slowing growth at home and a still uncertain global economic climate.
Puerto Vallarta, Mexico - The Mexican peso depreciated against the U.S. dollar on Friday, rounding out a tough week for the local currency after . . .
