Tariffs and Trades Shake the Mexican Peso – March 28

Traders peg the Mexican Peso at 20.32 against the US Dollar this morning, March 28, 2025, after a wild ride. A market maker in London shares this figure, noting moderate volumes of $1.2 billion so far today.

Yesterday’s chaos stemmed from fears of new US tariffs under President Trump, rattling Mexico’s export-reliant economy. The peso dropped 1.08%, sliding from 20.10 to a high of 20.3293 on March 27, as investors panicked.

Bargain hunters later pushed it back to 20.1046, but it settled at 20.32 by nightfall. Tariff threats sparked this sell-off, with Mexico’s trade surplus with the US hanging in the balance.

Overnight, the peso held steady at 20.32 in thin trading, offering no clear direction. Rumors swirl about US-Mexico talks to ease tensions, yet nothing solid emerges. Oil prices, vital for Mexico, stay flat, leaving the currency exposed.

Market makers in New York quote 20.31-20.33, expecting $3.5 billion in daily volumes if tariff news breaks. Yesterday saw $4.8 billion traded, well above the $3.9 billion monthly average. Meanwhile, $50 million flowed out of Mexico-focused funds, signaling investor jitters.

Mexico’s Peso Faces Key Technical Levels

Technically, the peso tests its 50-day average at 20.30, with resistance at 20.50 looming large. The momentum sits neutral at 55, but a break above 20.35 could spark a run to 21.00. Traders eye 20.20 as key support if selling resumes.

Mexico’s weak consumer confidence and potential central bank rate cuts add pressure. The US Dollar gains from safe-haven demand, while global markets brace for trade fallout. A

London trader notes thin bids below 20.25, hinting at more volatility ahead.
This story matters to business leaders watching North American trade ties.

Tariffs could disrupt Mexico’s economic engine, already strained by global uncertainty. The peso’s fate hinges on policy moves, with markets holding their breath for clarity.