Mexican Peso Gains 2.36% in First Week After Trump’s Return

Taking advantage of a weaker U.S. dollar, the Mexican peso closed a positive week in which U.S. President Donald Trump adopted a more moderate stance.

The peso extended its recovery against the dollar on Friday, benefiting from the depreciation of the U.S. currency. The exchange rate closed at 20.2856 pesos per dollar, compared to 20.3228 the previous day, according to official data from Mexico’s central bank (Banxico). This represented a gain of 3.72 centavos, or 0.18%.

USD/MXN

Throughout the session, the exchange rate fluctuated between a high of 20.3907 and a low of 20.1353. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against six major currencies, dropped 0.58% to 107.51.

On a weekly basis, the USD/MXN posted a solid advance of 48.97 centavos, or 2.36%, compared to last Friday’s close of 20.7753. The dollar, on the other hand, recorded a 1.69% decline against major global currencies, marking its worst weekly drop in two months.

Trump’s Moderate Stance

In a recent interview, Trump stated that he would prefer not to impose tariffs on China. His comments, made to Fox News, were interpreted by investors as a sign that his administration is adopting a softer trade stance.

Most Latin American currencies ended the session with gains, driven by the global decline of the dollar following remarks from the leader of the world’s largest economy and Mexico’s main trading partner.

Throughout the week, Trump made several statements that were well received by the markets, such as his calls for lower interest rates and reduced oil prices at the World Economic Forum in Davos. However, the most reassuring factor for investors was the absence of any new tariff announcements.

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.