Mexican peso fades after new tariffs announced

He Mexican peso closed with losses on July 7, failing to reverse the downward trend that had prevailed since the early hours of the day. At the close of the session, The local currency weakened against the US dollar, which showed a recovery in the markets.

The average closing exchange rate was 18.66 pesos per dollar, up 0.36% from the 18.59 pesos recorded the previous day.

READ: Mexican stock market loses in line with US indices

This rebound of the dollar is linked to the increase in global tension derived from the announcements of the President of the United States, Donald Trump, who confirmed the application of new tariffs starting August 1. The tariffs, which range between 25% and 40%, will directly affect economies such as Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos and Myanmar.

In addition, it was reported that 12 other nations will receive official notifications this week with similar measures, raising concerns in emerging markets heavily dependent on trade with the United States.

Despite this uncertain external environment, Mexico maintains a solid financial position, which acts as a buffer against exchange rate volatility. Between January and May, the country accumulated a trade surplus of over nine billion dollars, with a notable surplus of one billion 30 million in May, driven primarily by the growth of non-oil exports.

In addition, Remittances sent by Mexicans abroad reached a record high of $5.7 billion in June. , further strengthening international reserves and providing support to the peso against external factors.

In the last seven days, the dollar has fallen 0.39%, although it maintains a 1.61% gain over the past year. This recent decline ended a series of three sessions without significant variation.

In terms of volatility, the dollar's behavior in the last week has been noticeably more stable compared to the fluctuations observed over the last year, suggesting more controlled exchange rate dynamics in recent days.

Where to buy or sell the dollar?

It's recommended to visit places regulated by the authorities to avoid fraud. Also, keep in mind that the exchange rate varies depending on the bank or exchange office, and you should also check the commission they charge.

• Banks: If you are a customer, you can purchase up to four thousand dollars.
• Currency Exchange: The purchase limit is $1,500.
• Online platforms.
• ETFs (Exchange-Traded Funds).

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