The Mexican peso extended its gains against the dollar on Wednesday, March 12, despite the implementation of 25 percent tariffs on steel and aluminum from Mexico, and after inflation in February rose less than expected. According to Bloomberg, the peso appreciated by 0.43 percent against the dollar, bringing the exchange rate to 20.17 units, 8 cents less than the close on Tuesday, March 11.
Gabriela Siller, director of economic analysis at Banco Base, noted: "Despite the release of U.S. inflation below expectations, the dollar remains strong, as from today the 25 percent tariffs on general imports of steel and aluminum took effect." She emphasized that Mexico is still waiting for the date of April 2, when it is expected that Donald Trump will apply reciprocal tariffs on all countries.
Regarding tariffs on Mexican steel and aluminum, President Claudia Sheinbaum mentioned they will wait until next month to decide if Mexico will impose retaliatory tariffs on the United States. In Sheinbaum's words: "Marcelo Ebrard and Edgar Amador will be working with the Secretary of the Treasury to see how the situation unfolds on April 2 [...] We will wait until April 2, and from there, we will respond to see if we apply reciprocal tariffs in the case of aluminum and steel."
For its part, in bank exchange windows, the dollar is quoted at 20.69 units for sale and 20.56 for purchase, according to information from Banamex. The dollar index (dxy) rose 0.03 percent to 103.44 points, while the Bloomberg dollar index (bbdxy) increased by 0.01 percent to 1,265.51 units. In the money market, the yield on the U.S. 10-year bond is at 4.31 percent, while in Mexico it remains at 9.88 percent.
Among the most appreciated currencies on Wednesday, March 12, are the Colombian peso with 0.46 percent, the Israeli shekel with 0.30 percent, the Chilean peso with 0.25 percent, the Canadian dollar with 0.19 percent, and the South Korean won with 0.13 percent.
