The Mexican peso weakened against the U.S. dollar this Friday, closing at 19.3957 pesos per dollar. This represented an 8.41-centavo drop (0.44 percent) from Thursday’s official close of 19.3116, according to data from the Bank of Mexico (Banxico).
Market participants tracked a trading range between a high of 19.3355 and a low of 19.2579 pesos, while the Intercontinental Exchange’s U.S. Dollar Index (DXY) – which benchmarks the dollar against six major currencies – held steady at 99.34 points.
Investor caution spiked after U.S. President Donald Trump accused China of breaching a bilateral tariff-reduction agreement at a time when bilateral trade talks showed little progress. That salvo followed a late-Thursday appeals court decision to reinstate nearly all of Trump’s previously blocked tariffs, after a trade tribunal had deemed the measures an overreach and ordered a halt earlier in the week.
On the domestic front, all eyes turn to Sunday’s unprecedented judicial elections. More than 5,000 candidates are competing for upwards of 840 posts, including seats on the Supreme Court of Justice. The scale of this vote—set to choose magistrates at both federal and state levels—has injected an additional layer of uncertainty into the peso’s outlook.
In a note to clients, Monex Grupo Financiero highlighted the convergence of international and local risks. “We forecast an overnight trading range between 19.33 and 19.52, factoring in a stronger dollar and caution around the judicial elections,” the firm said.
The peso’s slide extended a turbulent week that saw it touch its weakest point since early October at 19.1815 on Wednesday. Over the week, the currency fell 15.59 centavos (0.81 percent) from last Friday’s close of 19.2398.
Despite the recent setback, the peso retains a solid monthly gain. In May, it appreciated by 21.79 centavos, or 1.11 percent, against April’s closing rate of 19.6136 pesos, buoyed by a more favorable trade environment following several U.S. trade accords.
As investors weigh renewed U.S. trade friction against the outcome of the nation’s largest judicial election ever, the peso is likely to remain sensitive to shifts in both global risk appetite and Mexican political developments. With the DXY pausing near its recent highs and local markets on edge ahead of Sunday’s vote, traders foresee continued volatility in the near term.
