Mexican peso hits a 4-month high at less than 20 to the dollar

The Mexican peso appreciated against the US dollar for a 4th consecutive time connected Friday to dip good beneath 20 to the greenback.

The peso strengthened to 19.84 to the dollar connected Friday morning, earlier weakening somewhat to commercialized astatine 19.88 to the greenback astatine 12 p.m. Mexico City time, according to Yahoo Finance.

The past clip the peso was stronger was successful November.

Compared to its Bank of Mexico closing complaint of 20.09 to the dollar connected Thursday, the peso appreciated 1.3% to scope 19.84.

The peso has appreciated astir 2.5% since closing astatine 20.36 to the dollar connected Monday.

The Monex fiscal radical attributed the strengthening of the peso connected Friday greeting to the caller Mexico-related comments made by United States officials.

The peso appreciated 1.3% against its Thursday closing complaint to scope 19.84 to the dollar connected Friday. (Daniel Augusto/Cuartoscuro)

Commerce Secretary Howard Lutnick said Thursday that Mexico and the United Kingdom were “pragmatic and thoughtful” successful their effect to the United States’ alloy and aluminum tariffs that took effect connected Wednesday. Unlike Canada and the European Union, Mexico and the U.K. refrained from instantly announcing retaliatory measures.

President Claudia Sheinbaum and Economy Minister Marcelo Ebrard said that Mexico volition hold until the United States implements reciprocal tariffs aboriginal adjacent period earlier determining immoderate retaliation.

Lutnick said the mode successful which the United States deals with Mexico and the U.K. connected commercialized issues volition beryllium “better” arsenic a effect of their restraint.

For his part, Secretary of State Marco Rubio said Thursday that the Mexican authorities has taken “very beardown measures that we’ve ne'er seen successful the past” against cartels and amerciable migration to the United States.

He besides said that “we’ve seen a level of practice from Mexican authorities that we’ve ne'er seen successful the past,” though helium added that “it’s not enough” and “we person to bash more.”

United States President Donald Trump has utilized tariffs to unit Mexico to bash much to stem the travel of drugs and migrants to the U.S.

Monex said the remarks of United States officials — it didn’t specify which ones — “mitigated portion of the nervousness” surrounding the Mexican peso.

Remarks by U.S. Secretary of State Marco Rubio were credited with having a stabilizing effect connected the peso. (Michael Vadon/Flickr)

The strengthening of the peso this week comes aft the currency depreciated to 21 to the dollar connected March 4, the day the United States imposed 25% tariffs connected each imports from Mexico and astir imports from Canada owed to what the White House said was the 2 countries’ nonaccomplishment to instrumentality capable enactment against “the influx of lethal drugs” to the U.S.

Most of the tariffs were lifted 2 days later, giving the peso an contiguous boost.

While the peso’s four-day streak of gains this week puts it successful its strongest presumption successful 4 months, the currency remains overmuch weaker than the 16.30 to the dollar level it reached past April.

With reports from El Economista