Mexican Peso Strengthens As Economic Activity Surpasses Expectations
Date
1/24/2025 7:00:43 PM
(MENAFN- The Rio Times) The Mexican peso gained ground against the dollar on Friday morning. The local currency moved towards a week-end recovery. Traders showed improved sentiment regarding President Trump's tariff strategy.
The spot exchange rate stood at 20.2251 pesos per dollar. This marked a gain of 9.77 cents or 0.48 percent for the peso. The previous day's official closing rate was 20.3228 units, according to Banco de México data.
The dollar price fluctuated between a high of 20.3907 units and a low of 20.1880. The Dollar index (DXY) fell 0.43% to 107.67 units. This index compares the U.S. currency against six other currencies.
Trump stated in a Fox News interview that he would prefer not to impose tariffs on China. Investors interpreted his comments as a sign of softening the administration's trade stance. This shift in tone boosted market confidence.
The President had earlier proposed 25% tariffs on Mexico and Canada, and 10% on China starting February 1. He also mentioned taxing European imports without providing specifics. These statements had initially caused market unease.
Mexico's National Institute of Statistics and Geography (INEGI) released encouraging economic data. The Global Indicator of Economic Activity (IGAE) expanded by 0.4% month-over-month in November. Year-over-year, it registered a 0.5% increase.
Monex Grupo Financiero analysts noted the peso 's strength. They attributed it to better-than-expected local economic activity figures. Growing expectations of a more conciliatory U.S. trade approach also played a role.
This upturn in the peso's value reflects Mexico's economic resilience. It also highlights the impact of international trade relations on currency markets. Investors remain watchful of further developments in U.S. trade policy.
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