Mexican Peso Gains After Trump’s Speech at Davos

The Mexican peso appreciated against the U.S. dollar during Thursday’s trading session. The local currency regained ground in a day influenced by a moderate speech from U.S. President Donald Trump at the World Economic Forum in Davos.

The exchange rate closed at 20.3228 pesos per dollar, compared to yesterday’s close of 20.4762 pesos, according to official data from the Bank of Mexico (Banxico). This movement represented a gain of 15.34 cents, or 0.75%.

The dollar’s price fluctuated within a range, reaching a high of 20.5643 pesos and a low of 20.2766. Meanwhile, the U.S. Dollar Index (DXY) from the Intercontinental Exchange, which measures the dollar against six major currencies, declined by 0.21% to 108.03 points.

USD/MXN

Trump at Davos and the Mexican Peso

President Trump’s speech at the Davos Economic Forum did not include details about his tariff plans. However, he urged global business leaders to manufacture in the U.S. to avoid tariffs, which improved market sentiment.

The fact that Trump did not directly threaten Mexico and even acknowledged that the trade deficit with the country remains manageable contributed to the positive sentiment surrounding the Mexican peso.

Trump also addressed his intentions to lower global oil prices, interest rates, and taxes. Since taking office, the Republican president has repeatedly threatened to impose tariffs on key trading partners, including Mexico.

Local Data and Outlook

Today, it was reported that Mexico’s consumer prices moderated more than expected in the first half of January, reaching an annual rate of 3.69%, within the central bank’s target range. Core inflation increased to 3.72%.

Analysts estimate that inflation will continue on a gradual downward trajectory, particularly during the first three quarters of the year. They maintain their year-end forecasts for 2025 at 3.8% for general inflation and 3.7% for core inflation.

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.