The Mexican peso resisted the uncertainty generated by Donald Trump's return as president of the United States and closed with a gain of 1.25% against the dollar on Monday, January 20, 2025. After Trump's presidential inauguration, the dollar reached 21.52 pesos, representing a minimal depreciation of 4.6 cents for the Mexican currency. However, at the end of the financial day, the peso recorded an appreciation of 26 cents, meaning that the US dollar decreased from 21.77 to 21.51 pesos per greenback compared to the previous Friday's close, according to the Bank of Mexico (Banxico).
Gabriela Siller Pagaza, the Director of Economic Analysis at Grupo Financiero BASE, emphasized that the dollar reached a maximum of 20.70 pesos during the speech of the new US president, representing a depreciation of 0.65% for the peso, equivalent to 13.14 cents. However, these losses turned into gains as Trump's presidential inauguration progressed and concluded.
Gabriela Siller explained that Trump's omission of the potential imposition of 25% tariffs on Mexican exports in his speech contained the dollar and dissipated the financial uncertainty that had previously been generated. Although it cannot be ruled out that the US administration may revisit this threat against Mexico, the markets reacted positively, and the exchange rate did not experience significant fluctuations as expected.
Regarding the Stock Exchanges in Mexico, they reported normal operations during Trump's inauguration, and by the end of his speech, they showed gains close to 1%. The Mexican Stock Exchange (BMV) closed the session with an increase of 0.52%, equivalent to 260.43 points, bringing the Price and Quotations Index (IPC) to 50,201.32 units. Meanwhile, the Institutional Stock Exchange (BIVA) concluded operations with an increase of 0.66%, with a rise of 6.70 points and a main indicator of 1,018.38 units.
