Puerto Vallarta, Mexico – The Mexican peso depreciated against the U.S. dollar on Wednesday morning, influenced by the general strengthening of the dollar after the release of new economic data from the United States.
As of this morning, the spot exchange rate stands at 19.6000 pesos per dollar. This figure represents a depreciation of 2.45 cents, or a decline of 0.13%, compared to Tuesday’s official closing price of 19.5755 pesos, according to data from the Bank of Mexico (Banxico).
Throughout the morning trading session, the dollar has fluctuated between a high of 19.6506 pesos and a low of 19.5461 pesos. Concurrently, the Dollar Index (DXY), which measures the U.S. currency against a basket of six major international currencies, rose 0.16%, reaching 99.37 points.
The peso’s decline followed the release of disappointing economic news from the U.S. Department of Commerce, which announced that the United States’ Gross Domestic Product (GDP) shrank by 0.3% in the first quarter of the year. This downturn represents a significant reversal from the previous quarter, which saw growth of 2.4%. Analysts attribute the contraction primarily to increased imports triggered by tariff concerns.
“The U.S. economy contracted in the first quarter due largely to the impact of President Donald Trump’s trade policies, which have significantly affected business confidence,” according to experts from Vector Casa de Bolsa.
Conversely, preliminary data from Mexico’s National Institute of Statistics and Geography (INEGI) indicated that the Mexican economy experienced marginal growth of 0.2% in the same period, avoiding a technical recession. Year-over-year growth was reported at 0.8% based on original figures.
However, analysts emphasize caution regarding the positive data. “While Mexico avoided technical recession this quarter, the growth was primarily due to the agricultural sector. The manufacturing and broader economic sectors remain challenged,” noted a report by Capital Economics.
As the global economic landscape remains uncertain, both economies continue to navigate challenges posed by domestic policies and international market conditions.
