Overview of Recent Market Activity
The Mexican peso ended the trading day on Tuesday with gains against the US dollar. The local currency reversed its initial losses as traders analyzed new trade threats from U.S. President Donald Trump against key Asian partners.
The exchange rate concluded the session at 18.5943 units per dollar, compared to Monday’s close of 18.6435 units, according to official data from Banco de México (Banxico). This movement represented a 4.92-centavo or 0.26% gain for the peso.
The dollar’s price moved within a range, with a high of 18.7403 units and a low of 18.5844 units. The Intercontinental Exchange’s Dollar Index (DXY) fell 0.07% to 97.49 units.
Trump’s Trade Threats
President Trump sent letters to the leaders of 14 countries, including significant Asian trade partners like Japan and South Korea, informing them of new tariffs. However, he postponed their implementation until August 1st, extending the truce set to end tomorrow.
“Given the end of the suspension for reciprocal tariffs and that the affected nations belong to the ‘Liberation Day’ list, the Mexican peso remains resilient, anticipating potential trade agreements with the U.S. in upcoming weeks,” said Monex.
Anticipation of Banxico Minutes
Locally, investors await the release of minutes from Banco de México’s (Banxico) most recent monetary policy decision, in which the governing board cut its reference interest rate by another 0.5 percentage points for the fourth consecutive time.
Meanwhile, traders will monitor tomorrow’s INEGI inflation data. The figures are expected to provide more clarity on the central bank’s next steps, following four consecutive months of acceleration in May, exceeding the target range.
Key Questions and Answers
- What is the current status of the Mexican peso against the US dollar? The Mexican peso ended Tuesday’s trading session with gains against the US dollar, closing at 18.5943 units per dollar.
- Why did the peso gain strength? The peso’s resilience is attributed to new trade threats from U.S. President Donald Trump against key Asian partners, with the truce on tariffs set to end soon.
- What are Trump’s recent trade actions? President Trump sent letters to 14 countries, including Japan and South Korea, informing them of new tariffs. The implementation has been postponed until August 1st.
- What are investors expecting in the Mexican market? Investors await the release of Banxico’s minutes from their recent monetary policy decision and tomorrow’s inflation data from INEGI.
- How might inflation data impact the Mexican economy? The anticipated inflation figures could offer insights into Banco de México’s future monetary policy decisions, given the recent acceleration in inflation rates.
