Ignacio Teson•Tuesday, April 8, 2025•2 min read
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The Mexican peso depreciated against the U.S. dollar for a third straight session on Tuesday, in another volatile trading day marked by mounting concerns over the global impact of U.S. tariffs and escalating tensions with China.
The exchange rate closed at 20.8083 pesos per dollar, compared to Monday’s official Banxico close of 20.6889. This represented a daily loss of 11.94 centavos, or 0.57%.
With this drop, the peso has now lost a total of 86 centavos, or more than 4.3%, over the past three sessions.
During the day, the dollar-peso exchange rate fluctuated between a high of 20.8133 and a low of 20.4703. Meanwhile, the Dollar Index (DXY), which compares the greenback against six major currencies, slipped 0.42% to 103.06.
USD/MXN
Global Jitters Intensify
Adding to market anxiety, a White House official announced that the U.S. will impose a 104% tariff on Chinese goods starting Wednesday, after Beijing refused to roll back retaliatory tariffs following Trump’s previous 54% hike.
China, accusing the U.S. of economic bullying, protectionism, and unilateralism, called on American companies—including Tesla—to “take concrete steps” to help ease the dispute, while vowing to continue defending its interests.
Earlier in the day, the peso had briefly appreciated nearly 1%, lifted by speculation that Washington might open talks to ease some of its trade measures. However, that optimism faded as the session progressed, and the currency slipped back toward its weakest level in a month.
Third Consecutive Decline
Although Mexico has so far been spared from the new tariffs thanks to the USMCA trade agreement, analysts warn that the country’s deep economic integration with the U.S. could still expose it to spillover effects—despite efforts by the Mexican government to stay out of the fray.
Just last Thursday, the peso had strengthened to 19.9434 per dollar following Mexico’s exemption from Trump’s tariffs. Since then, the exchange rate has risen 86.89 centavos, a depreciation of 4.34%.
Traders are now watching a range between 20.53 and 20.81 as tensions continue to weigh on emerging market currencies globally, driven by fears of a broader fallout from the U.S.-China trade dispute.
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
