Peso Depreciates on Fifth Straight Day Amid Trade Tension
The Mexican peso depreciated against the US dollar for the fifth consecutive day, closing at 20.4604 units per dollar, according to data from Banco de México (Banxico).
The peso’s movement resulted in a loss of 0.21% or 4.35 cents compared to the previous day’s close of 20.4169 units.
Five Days of Declines
Investors are preparing for “Freedom Day” on Wednesday, when President Donald Trump’s tariffs on US trading partners, including a 25% levy on non-US-made cars, will come into effect.
The peso has experienced five consecutive days of declines. Compared to last Monday’s official rate of 20.0587 units per dollar, the peso has fallen by 2%, losing 40.17 cents in total.
Positive Month and Quarter
Despite the recent decline, the peso has gained 0.57% or 11.79 cents compared to February’s close of 20.5782 units in March, and 2.02% or 42.25 cents compared to December’s closing rate of 20.8829 units in the first quarter.
Other Latin American currencies also fell amid trade tension-induced nervousness, but managed to accumulate gains during a favorable first quarter for risk assets.
Local Market Focus
In local news, attention is on the release of “General Guidelines for Economic Policy 2026” on Tuesday. This document includes government estimates for key variables, forming the basis for the 2026 public budget proposal.
Mexican operators are awaiting details from President Trump and a response from Mexico’s President, Claudia Sheinbaum Pardo, who stated she will react once US tariffs are concrete.
Meanwhile, UBS anticipates the peso to recover towards 20 units by year-end, expecting an eventual agreement between the US and Mexico to avoid a prolonged trade war.
