FX.co ★ Mexican Peso Appreciates on Less Severe US Tariffs

The Mexican peso appreciated, surpassing 20.2 per USD, bouncing back from a near one-month low of 20.47 on March 31. This recovery can be attributed to Mexico's relative exclusion from the more stringent reciprocal tariffs implemented by the United States. Unlike other nations affected by a comprehensive 10% tariff on imported goods introduced under the U.S.'s "Liberation Day" trade policy, Mexico experienced minimal impact. President Claudia Sheinbaum emphasized that Mexico would refrain from imposing retaliatory tariffs on the U.S., further enhancing the peso's standing. This preferential stance, together with advantageous trade agreements and sustained conversations with crucial partners like Canada, has strengthened investor confidence in the currency. Additionally, as global pressures have weakened the U.S. dollar, emerging market currencies, including the peso, have gained appeal, contributing to its recovery amid evolving trade strategies and stable domestic economic conditions.