On Friday, April 18, 2025, the Mexican peso experienced a slight depreciation against the US dollar, with the exchange rate settling at 19.72 pesos per dollar. This marks a minimal decline of 0.11 percent from the previous day, when it closed at 19.70 pesos, according to data from Bloomberg. The exchange rate reflects a 2-cent increase compared to April 17, 2025.
The dollar's selling price in various banks also showed a range of values. At Citibanamex, the dollar is sold for 20.26 pesos, while the purchase price is 19.15 pesos. Other banks reported similar figures, with Banco Azteca selling the dollar at 20.20 pesos and purchasing it at 19.10 pesos. In contrast, BBVA Bancomer listed a selling price of 20.43 pesos and a purchasing price of 18.90 pesos.
Despite the ongoing Semana Santa holiday, which typically slows down financial activity, market operators remain focused on international trade negotiations. The current climate of uncertainty is largely driven by tariff discussions between the United States and countries like Japan and China. President Donald Trump expressed optimism about reaching a trade agreement with the European Union, stating he has "a lot of confidence" in the negotiations. This follows a recent positive round of talks between the US and Japan, which ended without any major disruptions.
According to Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., "Trump did not show negativity regarding the trade negotiations with the EU." He noted that the recent discussions between the US and Japan were productive, which contributed to the stability of the currency exchange rates.
In the broader context, the dollar index (DXY), which measures the strength of the US dollar against a basket of six major currencies, rose by 0.09 percent to 99.38 points. Meanwhile, the Bloomberg dollar index (BBDXY) increased by 0.02 percent to 1,225.90 units.
Looking at the dollar's performance over the past week, it has recorded a decrease of 2.94 percent. However, over the last year, it still shows an increase of 18.55 percent. This fluctuation highlights the dollar's volatility and the impact of global economic conditions on its value.
Market analysts suggest that the peso's recent appreciation, which saw it strengthen by 0.8 percent to a rate of 19.96 pesos per dollar in the previous session, was influenced by a productive phone call between Trump and Mexican President Claudia Sheinbaum. This conversation, described as very productive, helped alleviate some uncertainty surrounding future trade relations between the two nations.
The Mexican peso is the legal currency of Mexico and is recognized as the first currency in the world to use the dollar sign ($), which was later adopted by the United States for its own dollar. The currency is the 15th most traded in the world and is the most traded in Latin America, ranking third on the continent after the US and Canadian dollars.
According to forecasts from the Bank of Mexico (Banxico), the dollar is expected to trade between 20.24 and 20.69 pesos in 2025. This conservative estimate considers the potential repercussions of Trump's policies and statements on the exchange rate. Banxico also predicts that inflation will remain below 4 percent, specifically at 3.8 percent for the year, while the GDP growth is expected to be a modest 1.2 percent.
In summary, the Mexican peso's performance against the US dollar reflects a complex interplay of local economic conditions and international trade negotiations. The ongoing discussions about tariffs and trade agreements will likely continue to influence the currency's value in the coming weeks.
As the markets remain cautious during the Semana Santa holiday, investors are advised to keep an eye on upcoming economic indicators and statements from central bank officials, as these could significantly impact currency values.
