On Monday, the Mexican peso experienced appreciation after reversing its sharp initial losses. This happened after the President of Mexico, Claudia Sheinbaum, and the President of the United States, Donald Trump, reported that they agreed to pause the tariffs announced against Mexico for a month. The peso was trading at 20.46 per dollar in its international dealings, showing a gain of more than 1%. This rebound occurred after the Mexican currency weakened to 21.28 units, its lowest level in nearly three years, due to concerns about a potential trade war.
Humberto Calzada, Chief Economist at Rankia Latin America, commented: "With this announcement, tensions in the relationship between Mexico and the United States could decrease, at least temporarily".
In Mexico, financial markets remained closed due to a national holiday.
