Puerto Vallarta, Mexico – The Mexican peso strengthened against the dollar on Friday, buoyed by renewed optimism over negotiations between the United States and China and an upbeat snapshot of domestic activity.
The currency finished local trading at 19.5223 pesos per dollar, a 0.30 % advance (5.86 centavos) from Thursday’s official close of 19.5809, Bank of Mexico (Banxico) data show. In the week—shortened by a local holiday—the peso appreciated 0.96 %, trimming 19.01 centavos from last Friday’s reference of 19.7124.
Trading was choppy, with the exchange rate oscillating between 19.6898 and an intraday low of 19.5125. The broader dollar was little help: the Intercontinental Exchange Dollar Index (DXY), which tracks the U.S. currency against six major peers, firmed 0.31 % to 99.60 at the close.
External tailwinds
Appetite for emerging-market assets improved after Beijing said it would grant tariff exemptions on select U.S. imports—its latest conciliatory gesture in the two-year trade standoff. U.S. President Donald Trump told Time magazine that talks were “moving along” and that Chinese President Xi Jinping called him earlier in the week—an assertion later questioned by Chinese officials.
While shifting headlines kept traders on edge, the prospect of détente in the world’s largest bilateral trade dispute underpinned risk-sensitive currencies such as the peso.
Domestic backstop
At home, the peso also drew support from stronger-than-expected February data. Mexico’s Global Economic Activity Indicator (IGAE) rose 1 % month-on-month, defying forecasts for a contraction and easing fears the economy slipped into a technical recession in the first quarter. On an annual basis, output was still 0.7 % lower.
“These figures suggest the economy may be less weak than many feared,” analysts at brokerage Actinver said in a note.
Still, headwinds persist. Preliminary first-quarter GDP figures due next week will be pivotal, said Quasar Elizundia, strategist at brokerage Pepperstone.
“If growth continues to decelerate, it would reinforce the Bank of Mexico’s dovish tilt and could rekindle pressure on the peso,” he said.
Policy outlook
Banxico has already signaled room for further easing after slashing its benchmark rate by a cumulative 100 basis points since last summer. Softer growth prints would likely embolden the central bank, particularly if inflation remains anchored near the 3 % target.
For now, traders will balance Banxico’s cautious stance against external drivers—including progress on U.S.–China talks and fluctuations in the DXY. Until there is concrete progress on either front, most desks expect the peso to stay range-bound between 19.45 and 19.70 in the near term.
Puerto Vallarta, Mexico - The Mexican peso strengthened against the dollar on Friday, buoyed by renewed optimism over negotiations between the United States and China . . .
