Overview
The Mexican peso strengthened against the US dollar on Monday, as traders remained vigilant about negotiations between the United States and its partners, just days before the implementation of tariffs.
Market Performance
The Mexican currency advanced due to the weakening of the greenback. The exchange rate ended this session at 18.6617 pesos per dollar, representing a gain of 6.95 centavos (0.37%) compared to Friday’s close of 18.7312 pesos, according to official data from Banco de México (Banxico).
The dollar’s price fluctuated between a high of 18.7375 pesos and a low of 18.6251 pesos. The Intercontinental Exchange’s Dollar Index (DXY), which compares the US currency to six benchmark currencies, fell 0.60% to 97.87 units.
Approaching US Tariffs
According to Scott Bessent, the US Secretary of the Treasury, the quality of trade agreements is more important to the Trump administration than the timeline. This statement came before the August 1 deadline for implementing tariffs on several countries.
Howard Lutnick, the US Secretary of Commerce, stated that August 1 is a “firm deadline” for countries to start paying tariffs. However, he noted that nothing prevents countries from submitting new proposals after the tariffs take effect.
Juan Carlos Cruz Tapia, a financial consultant, highlighted that “the dollar falls, and most emerging market currencies capitalize on it. The EU is discussing an action plan in case negotiations fail, and Bessent mentioned in an interview that dialogues with China are progressing well.”
Monex Grupo Financiero noted in an analysis that investors continue to assess the possibility that the Trump administration’s tariff threats are merely a negotiation tactic before their potential implementation on August 1.
Upcoming Relevant Data
Domestically, traders are preparing for a week of significant data releases. The Indicador Global de Actividad Económica (IGAE) for May will be released tomorrow, and on Thursday, the Indice Nacional de Precios al Consumidor (INPC) for the first half of July is expected.
Key Questions and Answers
- What is the current state of the Mexican peso against the US dollar? The Mexican peso appreciated against the US dollar on Monday, reaching 18.6617 pesos per dollar, after weakening of the greenback.
- Why are traders closely monitoring market developments? Traders remain vigilant about negotiations between the United States and its partners, just days before tariffs are set to be implemented.
- What is the stance of the Trump administration regarding tariffs and deadlines? Scott Bessent, the US Secretary of the Treasury, emphasized that the quality of trade agreements is more important than adhering to deadlines. Howard Lutnick, the US Secretary of Commerce, stated that August 1 is a “firm deadline” for countries to start paying tariffs.
- What significant data releases are expected this week in Mexico? Traders are preparing for the release of the Indicador Global de Actividad Económica (IGAE) for May and the Indice Nacional de Precios al Consumidor (INPC) for the first half of July.
