Peso Mexicano Continues to Decline Amid Global Recession Fears and US-China Tensions
The Mexican peso depreciated against the dollar in Monday’s trading session, amid global concerns over a potential recession. This is due to the announcement of US tariffs and President Donald Trump’s threats towards China.
The exchange rate concluded at 20.6889 pesos per dollar, marking a decline of 1.09% or 22.39 pesos from Friday’s close of 20.4650 pesos, according to data from the Bank of Mexico (Banxico).
The dollar price fluctuated between a high of 20.8098 pesos and a low of 20.4814 pesos.
The Dollar Index (DXY), from the Intercontinental Exchange, which compares the US dollar to six benchmarks, rose by 0.47% to reach 103.50 units.
“The negative response of the peso is explained by Mexico’s close relationship with the United States,” said Monex. “Adverse effects could persist if there’s a slowdown in the US economy.”
Volatile Trading Day
Earlier, significant volatility was observed in financial markets following media reports of White House economic advisor Kevin Hassett suggesting that President Donald Trump might pause tariffs for 90 days.
Later, the White House denied Hassett’s statement, and Trump himself added to investor anxiety by threatening China with additional tariffs if it doesn’t withdraw its retaliatory measures.
Although Mexico is not part of Trump’s universal tariff plan, it faces levies on aluminum, steel, and automobiles for which it’s trying to negotiate. President Claudia Sheinbaum aims to avoid reciprocal tariffs and continues seeking an agreement with the Trump administration.
“Today’s range has been wide: 20.80 (unseen since early March) has served as significant medium-term resistance,” noted Juan Carlos Cruz Tapia, financial analyst and consultant.
