FX.co ★ Mexican Peso Rebounds

The Mexican peso gained strength, reaching approximately 20.2 against the U.S. dollar. This recovery comes after it dropped to its lowest point since March 2022, hitting 20.85 on April 8th. The peso's rebound is attributed to diminishing global recession fears and a significantly improved demand outlook for Mexican exports, particularly to the United States, Mexico's largest trading partner. This positive shift followed President Trump's announcement of a 90-day suspension of reciprocal tariffs for most countries, with the exception of China, which now faces an increased levy of 125%. This policy adjustment has alleviated some of the uncertainty that has recently affected global markets, reviving risk appetite and providing relief to trade-dependent economies like Mexico. As a vital contributor to U.S.-linked supply chains, Mexico is well-positioned to benefit from a more stable trade environment and the potential resurgence of cross-border industrial activity. Furthermore, the stabilization of commodity prices coupled with improving global sentiment has resulted in increased foreign exchange inflows, further strengthening the peso.