The Mexican peso continues its upward trend, gaining strength against the U.S. dollar as it trades below the 20-unit barrier for the first time since November 2024. On Friday, March 14, 2025, the peso is valued at 19.9633 units per dollar, reflecting a gain of 0.58% from the previous reference price of 20.0798 pesos reported on Thursday, March 13, 2025. This marks the fourth consecutive day of gains for the national currency, placing it on track to end the week with an accumulated return of approximately 1.35%.
The dollar's trading price on March 14 begins at 19.96 pesos per greenback, continuing the favorable conditions for the peso. According to financial institutions across Mexico, exchange rates vary slightly, with rates reported as follows:
- BBVA Mexico: 19.10 pesos (buy) and 20.23 pesos (sell)
- Citibanamex: 19.50 pesos (buy) and 20.57 pesos (sell)
- Banco Azteca: 19.15 pesos (buy) and 20.55 pesos (sell)
- Banorte: 18.80 pesos (buy) and 20.45 pesos (sell)
- Banca Afirme: 19.10 pesos (buy) and 20.70 pesos (sell)
- Scotiabank: 18.00 pesos (buy) and 21.80 pesos (sell)
- Inbursa: 19.70 pesos (buy) and 20.70 pesos (sell)
This fluctuation is occurring amid heightened tension surrounding proposed tariffs from the U.S. After Donald Trump announced plans to impose a 200% tariff on wine and cognac imports from Europe, the financial markets reacted with mixed feelings, shifting investor focus back to Mexico’s status and its relationship with the U.S. The tariff threats underpin concerns about potential ramifications for cross-border trade, impacting everything from wine to broader economic growth.
On Thursday, prior to this latest exchange rate report, the S&P/BMV IPC index fell by 0.33% to 51,867.57 points, highlighting the volatile nature of the market as uncertainties loom over trade relations. Notably, stocks for media giant Televisa plummeted by 5.75% to 7.05 pesos, leading market declines, followed by Becle's shares dropping 5.47% to 17.44 pesos as investors reacted to the shifting economic signals.
The dynamics of the bond market also reflect the shifting economic climate. For example, the return on the 10-year Mexican government bond decreased by 6 basis points to 9.533% by the end of trading on March 13, 2025, and the 20-year debt yield fell 2 basis points to 10% during the same period.
Experts indicate the strengthening peso may provide temporary relief for consumers but heightens concerns about how tariffs and trade tensions could influence the broader economic framework. With import costs rising and potential retaliatory measures on American products, analysts speculate on the potential economic fallout for Mexico.
Despite these challenges, the current appreciation of the Mexican peso marks a notable moment, attracting attention from international investors who are keeping watch.
Looking forward, as the situation develops, it remains to be seen how both the Mexican and U.S. economies will adapt to the looming threats from policy changes, affecting trade, pricing, and market sentiment. The increasing volatility suggests traders will need to remain vigilant as economic indicators fluctuate and geopolitical tensions continue to reshape financial landscapes.
The recent trend of the Mexican peso’s appreciation against the dollar speaks volumes about investor confidence, at least for the moment, but the broader influence of tariff threats from the U.S. keeps all eyes firmly focused both above and below the 20-unit mark as the week draws to a close.