The Mexican peso strengthened against the dollar on Thursday. Reuters reported that the local currency recovered ground in a trading session marked 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. This represented a gain of 15.34 cents or 0.75 percent compared to Wednesday’s close of 20.4762 pesos. The dollar price fluctuated between a high of 20.5643 and a low of 20.2766 pesos.
Trump’s speech in Davos lacked information about his tariff plans. He urged global business leaders to produce in the U.S. to avoid paying tariffs. This improved market sentiment. The absence of direct threats to Mexico contributed to the peso‘s positive mood.
The U.S. president focused on his intentions to reduce global oil prices, interest rates, and taxes. Since taking office, Trump has threatened to impose tariffs on major trading partners like Mexico. However, his moderate tone in Davos eased concerns.
Mexican consumer prices moderated more than expected in early January. The inflation rate fell to 3.69% year-on-year, within the central bank‘s target range.
Core inflation rose slightly to 3.72%. Analysts expect inflation to gradually decline in the first three quarters of 2025. The peso’s appreciation reflects improved market sentiment following Trump’s speech.
It also highlights the importance of U.S.-Mexico trade relations. The currency market remains sensitive to political rhetoric and economic data from both countries.
Key Facts
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— For the complete picture, read our in-depth guide: Mexico Economy 2026: GDP, Peso, Nearshoring, Banxico and Trade
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