The Mexican peso has shown significant strength against the U.S. dollar after the U.S. Supreme Court ruled that former President Donald Trump lacked the legal authority to impose tariffs on several trading partners, including Mexico. Chief Justice John Roberts stated that for such a significant exercise of power, a clear authorization from Congress is necessary, something Trump could not provide. This ruling has been interpreted as a potential relief for the Mexican economy, which had been under strain from these tariffs.

Financial analysts are optimistic about the implications of the Supreme Court's decision. Aroop Chatterjee, a strategist at Wells Fargo, noted that while the ruling is expected to provide temporary relief from risks associated with tariffs, the U.S. government retains substantial authority to impose tariffs under other laws. However, the viability of these alternative measures is yet uncertain. This context highlights the complex interplay between U.S. economic policies and their immediate impacts on Mexico’s economy, particularly in relation to the USMCA trade agreement.

As of February 20, the peso has appreciated against the dollar by 0.53%, signaling investor confidence following the court's decision. This strength of the peso suggests a favorable reaction from the markets, where traders are likely reassessing the risks connected to U.S.-Mexico trade relations after the Supreme Court's ruling. Overall, the outlook appears cautiously optimistic, but the future remains contingent on the actions the U.S. government might take regarding tariffs and trade policy.