Quick overview
- The Mexican peso weakened slightly against the dollar, closing at 18.6444 pesos per dollar.
- Concerns over U.S. President Trump’s trade tariffs contributed to the peso’s decline.
- The peso experienced a marginal weekly loss of 1.47 centavos despite earlier gains.
- Trump’s announcement of a 35% tariff on Canadian exports raised fears about the USMCA trade pact.
The Mexican peso weakened slightly against the dollar on Friday, ending the week with cumulative losses as renewed concerns over U.S. President Donald Trump’s trade tariffs weighed on sentiment.
The exchange rate closed the session at 18.6444 pesos per dollar, compared to 18.6169 yesterday, according to official data from Mexico’s central bank (Banxico). That marks a daily loss of 2.75 centavos, or 0.15%, for the local currency.
The U.S. dollar traded between a high of 18.7483 and a low of 18.6028 pesos throughout the session. Meanwhile, the U.S. Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, rose 0.29% to 97.87.
USD/MXN
Canada Tariffs Raise Broader Trade Concerns
The peso reversed its weekly gains after traders digested Trump’s surprise announcement of a 35% tariff on Canadian exports to the U.S. starting August 1, communicated in a letter to Canadian Prime Minister Mark Carney. U.S. imports from Canada are currently subject to 25% tariffs. The news raised fresh concerns about the USMCA trade pact and the possibility of Mexico facing higher tariffs as well.
Weekly Reversal Despite Midweek Strength
Compared to last Friday’s close of 18.6297, the peso posted a marginal weekly decline of 1.47 centavos, or 0.08%. Earlier in the week, the peso had touched its strongest level since August 2024—18.5502 per dollar—after local inflation data suggested Banxico may slow the pace of interest rate cuts.
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.
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