Mexican Peso Recovers Amid Market Anticipation of Trump’s Policies

The Mexican peso gained strength on Monday morning, reversing a negative start to the week. Reports indicated that Donald Trump would not announce new tariffs on Mexican products during his first day in office.

The spot exchange rate for the peso stood at 20.5228 per dollar. This figure marked an improvement from Friday’s official closing rate of 20.7753, reflecting a gain of 25.25 cents or 1.23 percent.

Earlier in the session, the dollar had risen to 20.8869 pesos, while the session’s low reached 20.4973 pesos. The U.S. Dollar Index (DXY), which measures the dollar against six other currencies, fell by 1.26 percent to 107.97.

The peso faced pressure following Trump’s electoral victory in November, as he threatened to impose significant tariffs on Mexican imports until the government addressed issues related to drug trafficking and illegal immigration.

Market participants closely monitored Trump’s executive orders for any implications affecting the U.S.-Mexico border and potential tariffs on Mexican exports.

Analysts noted that the peso appreciated after news leaked that Trump might not announce tariff increases in the immediate future. Speculation arose that he could sign an executive order related to tariffs during his inauguration ceremony, according to Ci Banco.

Trading occurred against the backdrop of a holiday in the United States, honoring Martin Luther King Jr., which resulted in lower market volume. Despite this, traders expressed nervousness as they awaited further information, as highlighted by Vector.

Experts from Banco Base projected that throughout the session, the dollar would fluctuate between a maximum of 21.02 pesos and a minimum of 20.40 pesos per dollar.

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