The Mexican peso opened lower against the dollar despite the U.S. currency weakening, reflecting ongoing concerns over domestic insecurity and external economic policies.
On February 25, the Mexican peso began the day on a negative note, depreciating against the U.S. dollar despite the latter's overall weakening. According to Bloomberg data, the exchange rate was reported at 17.2140 pesos per dollar, indicating a depreciation of 0.23 percent or 3.87 cents compared to the previous closing data. Market analysts anticipate that the peso may trade sideways for the rest of the day as investors digest trade data and await the State of the Union address in the United States.
The depreciation of the peso is attributed to various factors, with internal insecurity and Trump's protectionist policies emerging as primary threats. Felipe Mendoza, a market analyst at EBC Financial Group, highlighted that the combination of these elements could prompt the exchange rate to breach the resistance level of 17.30 pesos if negative rhetoric surrounding economic policies intensifies. This paints a concerning picture for the Mexican economy, which continuously grapples with issues tied to crime and political uncertainty.
In parallel, the price of the dollar in banks has reached notable levels, as evident in the day's trading data. As market conditions evolve and external influences come into play, the performance of the peso against the dollar will remain a closely watched indicator not only for financial analysts but also for stakeholders in both the Mexican and U.S. economies.
