Puerto Vallarta, Mexico – The Mexican peso firmed marginally against the U.S. dollar in early Friday trading, buoyed by renewed optimism over Sino-American trade talks and a stronger-than-expected reading on domestic economic activity.
The spot rate opened at 19.5745 pesos per dollar, a gain of 0.03 % from Thursday’s official close of 19.5809, according to Bank of Mexico (Banxico) data. Intraday quotes have oscillated between a high of 19.6898 and a low of 19.5631, reflecting cautious mood ahead of the weekend.
Meanwhile, the U.S. Dollar Index (DXY)—which tracks the greenback against six major currencies—rose 0.27 % to 99.56, capping the peso’s advance but leaving the local unit on track for a modest weekly uptick.
Investors found encouragement after Beijing said it will introduce targeted tariff exemptions on select U.S. imports, a gesture widely interpreted as a goodwill signal in the long-running trade dispute between the world’s two largest economies.
U.S. President Donald Trump told Time magazine he intends to remain “very friendly” in upcoming talks and confirmed that Chinese President Xi Jinping had reached out earlier in the week. While Chinese officials have offered a more cautious interpretation of the call, market participants see a window for at least partial rollback of existing duties—an outcome that typically favors emerging-market assets such as the peso.
“This is a classic risk-on reaction,” said Gabriela Siller, head of economic analysis at Banco BASE. “Any concrete step toward de-escalation between Washington and Beijing usually translates into a weaker dollar and an appreciating peso, even if the move is only slight.”
Domestic data surprise supports the peso
Locally, sentiment received a further lift from February figures for the Global Economic Activity Indicator (IGAE), which climbed 1 % month-on-month, according to national statistics bureau INEGI. Analysts had braced for a flat or negative print amid fears that Mexico entered a technical recession in the first quarter.
“Today’s IGAE release suggests the slowdown may not be as pronounced as many feared,” brokerage Actinver wrote in a note to clients. “If subsequent data confirm the trend, the peso could find firmer footing despite external headwinds.”
Year-on-year, activity still contracted 0.7 %, underlining the fragile state of Latin America’s second-largest economy. Banxico’s most recent survey of private-sector economists points to full-year growth of barely 1 %, making the currency vulnerable to shifts in global risk perception.
For now, traders will keep a close eye on weekend headlines from Washington and Beijing as well as domestic inflation data due next week. With the dollar hovering near a two-week high against major peers, further peso gains may be limited unless tangible progress emerges on the trade front.
Still, the combination of incremental trade optimism and resilient local indicators has been enough to steer the peso toward a modest weekly gain—an outcome few predicted at the start of an event-heavy week.
Puerto Vallarta, Mexico - The Mexican peso firmed marginally against the U.S. dollar in early Friday trading, buoyed by renewed optimism over Sino-American . . .
