The Mexican peso appreciated against the dollar in Monday trading. The local currency advanced, taking advantage of a globally weakening greenback after US President Donald Trump threatened new tariffs and accused China of violating a trade agreement.
The exchange rate closed at 19.1998 pesos per dollar, a gain of 19.59 cents (1.01 percent) from yesterday’s record of 19.3957, according to official data from the Bank of Mexico (Banxico).
The dollar traded between a high of 19.4348 and a low of 19.2015. The Intercontinental Exchange’s Dollar Index (DXY), which measures the US currency against a basket of six peers, fell 0.65 percent to 98.68 points.
On Friday, Trump warned he would double steel and aluminum tariffs to 50 percent, hours after accusing China of reneging on an agreement to mutually reduce tariffs and trade restrictions on critical minerals.
“The peso begins the month gaining ground and testing the 19.20 support level, given the weakness of the dollar,” said Juan Carlos Cruz Tapia, a financial consultant. “Brokerage firms indicate that the dollar could fall to levels not seen since the pandemic, potentially reaching 19 units.”
Locally, investors also digested Mexico’s first elections for the judiciary, a process that has generated uncertainty since it was proposed by the previous administration. Market participants are now awaiting the results of the vote count.
Additionally, Banxico’s survey of private-sector specialists showed that expectations for the policy rate by year-end rose to 7.50 percent from a previous 7.75 percent, implying cumulative cuts of 100 basis points.
