The Mexican peso is poised to extend its positive streak against the dollar as risk aversion towards Mexico decreases, following weeks of tariff threats from President Donald Trump. According to Bloomberg, the Mexican peso appreciates by 0.23% against the dollar, placing the exchange rate at 20.24 units, 6 cents lower than the close on Monday, February 17.
Carolina Colón, Commercial Leader of Capitaria Mexico, commented: "The dollar is moving between 20.10 and 20.80 pesos, with tariffs looming and enthusiasm in the US stock market where stocks are traded in dollars, and any positive movement should be interpreted as bullish for the dollar." Colón also mentioned that the peso could appreciate even more once there is greater clarity regarding Trump's tariffs.
Currently, the general tariffs on Mexico of 25% are paused until March 4; however, the tariffs on steel and aluminum will come into effect on Wednesday, March 12. To address this situation, Marcelo Ebrard, Secretary of Economy, will travel to the United States this week to meet with representatives of the Trump administration and attempt to eliminate these tariffs.
At bank counters, the dollar is sold at 20.76 units, and its buying price is 19.56 pesos per greenback, reported Citibanamex. The dollar index (dxy) has increased by 0.31% to 106.90 units, while the Bloomberg dollar index (bbdxy) has risen by 0.10% to 1,288.53 points. Regarding bonds, the yield on the 10-year US bond is 4.51%, while in Mexico it stands at 10.27%.
Within the global economic landscape, a depreciation is observed in currencies such as the New Zealand dollar (-0.61%), Czech koruna (-0.43%), Polish zloty (-0.40%), and Norwegian krone (-0.37%).
