Puerto Vallarta, Mexico – The Mexican peso held firm on Monday, closing at 19.7141 per dollar and touching an intraday low of 19.5847, its best showing since October. The day’s range—book‑ended by a high of 19.7672—left the currency virtually unchanged from Friday’s reference of 19.7124, yet confirmed a steady appreciation trend fueled by a markedly softer greenback.
The Dollar Index (DXY) slid 1 percent to 98.39, pressured by fresh doubts over the U.S. policy outlook as former president Donald Trump escalated attacks on the Federal Reserve and its chair, Jerome Powell.
“The move is part of the ‘Sell America’ trade—investors are rotating out of U.S. assets on mounting recession chatter and concern Powell could be forced out,” said Juan Carlos Cruz Tapia, an independent financial consultant.
Over the weekend, Trump accused Powell of “playing politics” for resisting deeper rate cuts. By Friday, White House economic adviser Kevin Hassett acknowledged the president’s team was “looking at” ways to remove the Fed chief—an unprecedented step that would test the central bank’s independence and likely roil markets.
Bond yields slipped and the dollar wilted in response, creating a tail‑wind for risk‑sensitive currencies such as the peso.
Adding to the greenback’s woes, the People’s Bank of China on Monday urged state‑owned firms to settle more overseas invoices in yuan, a fresh sign Beijing wants to chip away at dollar dominance in trade.
At home, dealers said lingering optimism from Trump’s “very productive” phone call last week with President Claudia Sheinbaum continued to underpin the peso.
“Political turbulence north of the border could cap further gains, but constructive U.S.–Mexico dialogue has been a stabilizing factor,” noted Felipe Mendoza, market analyst at broker ATFX. “Expect bouts of volatility, yet the peso’s bias remains positive while U.S. uncertainty lingers.”
Outlook
• Support: 19.55–19.60
• Resistance: 19.80, then the psychological 20.00 level
Barring a swift resolution to the Trump–Fed standoff—or an abrupt shift in global risk appetite—traders see limited scope for a meaningful dollar rebound in the near term. Still, analysts caution that headline‑driven swings could amplify in coming sessions.
Puerto Vallarta, Mexico - The Mexican peso held firm on Monday, closing at 19.7141 per dollar and touching an intraday low of . . .
