this sunday February 22he weight Mexican appears resilient and with profits against the dollarhowever the new tariff global announcement by the United States and political tensions suggest that volatility will continue this week.
What is the price of the dollar this Sunday, February 22?
The most recent reports of Reuters e Investing indicate that the exchange rate is among the 17.1113 and 17.1400 pesos per dollar; However, it is necessary to clarify that these values correspond to the closing date of Friday, February 20.
The reason is that in Mexico there is no banking activity on weekends, except in branches of Azteca Bankwhich do open on Saturdays and Sundays. In them, the exchange rate for today is like this:
- Purchase: 16.00 pesos
- Sale: 17.79 pesos
We recommend: Price of the dollar in real time: This is how the Mexican peso is quoted at the moment
Why did the peso and the dollar close like this this week?
The peso found an oxygen tank in the American courts. After a week marked by volatility and nervousness, the currency and the Mexican Stock Exchange (BMV) closed with significant gains, driven by a landmark Supreme Court ruling of the United States that places limits on trade policy of President Donald Trump.
At the close of the day, the national currency registered a 0.8% appreciation. With this movement, the peso broke a two-day streak of consecutive losses and managed to rescue a weekly accumulated return of 0.25%, defying the most pessimistic forecasts.
The driving force behind this recovery was the decision of the highest US court, which ratified the ruling of a lower court declaring that the Executive exceeded its powers.
Trump had resorted to a law intended for national emergencies to justify the imposition of widespread tariffs; However, the judges determined that said legislation does not provide a blank check to alter global trade without the approval of Congress.
Despite this setback, the Trump administration has not backed down from its protectionist rhetoric. Minutes after learning of the ruling, he announced a new global tariff of 10% and then raised it to 15% as a substitute for the canceled measures. However, the market interpreted the Court’s intervention as a necessary institutional counterweight, which injected momentary confidence into risk assets.
For Mexico, this ruling comes at a critical moment. Since the beginning of his second term, Trump has used tariff threats as a tool of pressure to demand that the country contain the flow of fentanyl and the irregular passage of migrants.
This position has kept investors in suspense, especially in the face of the review of the Treaty between Mexico, the United States and Canada (T-MEC) planned for this year. The advance of the peso this Friday suggests that, although uncertainty persists, legal mechanisms in the US could soften the impact of the White House’s unilateral decisions.
He weight relief It wasn’t just due to politics. The session was also marked by economic data in EUincluding the figures of the GDP of the fourth quarter. These numbers keep alive bets that the Federal Reserve (Fed) will begin a cut in interest rates towards the month of June, a scenario that usually favors emerging currencies such as the peso.
However, optimism is cautious. Raphael Bostic, head of the Atlanta Fed, warned that the Supreme Court ruling raises new questions about how these trade conflicts will affect inflation and prices, which could force the central bank to reevaluate its strategy.
What does the price of the dollar in Mexico depend on?
He price of the dollar in Mexico It is influenced by various factors. Below we tell you the main ones:
- Interest rates: An increase in interest rates by the Federal Reserve (Fed) of the United States (EU) makes dollar assets more attractive, increasing their demand and value against the peso. An increase in rates by Banxico could strengthen the peso.
- Inflation: Inflation in both countries affects the price of the dollar. High inflation in Mexico depreciates the peso, while low inflation in the US can strengthen the dollar.
- Economic growth: Mexico’s economic performance directly affects the currency. Solid growth attracts foreign investment and appreciates the peso, while an economic weakening depreciates it, increasing the price of the dollar.
- Political situation: Political stability in Mexico and international events can significantly impact the price of the dollar.
- Remittances: Remittances are an important income of dollars to the Mexican economy, affecting its price.
