The Mexican peso ended the week with a positive performance against the dollar, recovering ground in a less uncertain global trade environment, while the United States continued focusing on China’s trade efforts.
The exchange rate closed the day at 20.2935 pesos per dollar. Compared to yesterday’s mark of 20.4396 pesos, as reported by the Bank of Mexico (Banxico), this movement represented a gain of 14.61 cents or 0.72 percent for the peso.
The dollar price fluctuated within a range, with a high of 20.6220 units and a low of 20.2976. The Dollar Index (DXY), from the Intercontinental Exchange, which compares the dollar to a basket of six key currencies, fell by 1.02% to 99.92 points.
Volatile Week
The US-initiated trade dispute has pushed its tariffs on Chinese products to 145%. China responded by raising its tariffs to 125%, but the suspension of global US tariffs has buoyed market spirits.
A decreased aversion to risky assets in the market allowed the peso to recover after briefly surpassing 21 per dollar this week. Compared to last Friday’s official close of 20.4650 units, it gained 17.15 cents or 0.84 percent.
“Global financial markets have reacted strongly to announcements about US and other countries’ tariffs this week, creating a highly complex trading environment,” noted CIBanco in an analysis note.
Local Boost for the Peso
Locally, market momentum came from data on Mexico’s industrial production. The country’s industrial activity increased by 2.5% in February, according to INEGI. On an annual basis, the rise was 0.4 percent.
“Local industrial production showed a significant uptick, helping to alleviate some pressures on local economic development, in a cautious and uncertain environment,” analysts at Monex Grupo Financiero highlighted in their report.
