The Mexican peso ended the week weaker against the US dollar, marking its third consecutive week of losses due to heightened risk aversion from investors amidst trade tensions.
According to data from Banco de México (Banxico), the Mexican currency closed at 20.4650 pesos per dollar on Friday, marking a decline of 2.62% or 52.16 cents. This result indicates the worst performance since June 7, 2024, when it dropped by 2.65%
- Weekly Performance: The peso showed a weekly depreciation of 0.24%, accumulating three consecutive weeks of decline against the dollar.
- Electronic trading on Sunday evening:
- Comparison with other currencies: Among the most depreciated currencies were the Australian dollar (-4.25%), South African rand (-3.61%), Chilean peso (-2.86%), Norwegian krone (-2.76%), New Zealand dollar (-2.39%), and Colombian peso (-1.70%).
- Appreciated currencies: The Swiss franc (+2.25%), Japanese yen (+1.94%), Danish krone (+1.24%), South Korean won (+0.77%), Canadian dollar (+0.69%), and Russian ruble (+0.53%).
- DXY Index: The Dollar Index (DXY) of the Intercontinental Exchange, which measures the US dollar against a basket of six reference currencies, fell 0.98% to 103.02 points.
The peso fell nearly 1%.
Week of Fluctuations
Gabriela Siller, Director of Analysis at Banco Base, reported that on Thursday, April 2, the Mexican peso hit its lowest point for the year due to US President Donald Trump’s absence in announcing additional tariffs against Mexico and extending the exemption from a 25% tariff for Mexican exports complying with T-MEC rules.
“This was seen as a signal that Trump still considers the trade agreement relevant and aims to maintain his commerce with Mexico and Canada,” she said.
On Friday, the peso erased its gains and fell by 2.62%, registering the largest single-day drop since June 7, 2024.
“Friday’s decline occurred after China announced measures against the US, introducing a 34% tariff on all imported goods starting April 10 as a response to the US offensive,” Gabriela Siller explained.
CIBanco experts stated that global trade war intensified. “China announced a 34% tariff on all US imports, matching Trump’s last round of taxes and adding to the existing 20%.”
They added that this situation has led to significant declines across most risky assets and a search for safe havens in financial markets.
“This is just the beginning. The economic impact and inflation implications, along with how central banks will address this, are yet to be seen. Recent actions have increased the risk of recession in the US and globally,” they concluded.
