Mexican Peso Slides Near 17.3 per Dollar Amid Economic Slump and US Trade Rhetoric

The Mexican peso opened Thursday trading around 17.31 per U.S. dollar, reflecting investor caution as domestic economic data points to a slowdown and external pressure mounts from former President Donald Trump's comments threatening the United States‑Mexico‑Canada Agreement (USMCA/T‑MEC). Analysts note that weaker internal demand and the prospect of heightened U.S. trade protectionism raise the risk premium on the peso.

Market observers project the peso could trade between 17.40 and 17.48 per dollar, with a key intraday support level near 17.25. The Federal Reserve kept rates steady but signaled a restrictive stance, adding to the currency's volatility. Continued monitoring of Mexico's private spending and aggregate demand figures will shape the peso's trajectory.

The situation underscores how Mexico’s heavy reliance on the U.S. – which absorbs about 85% of its exports – makes the currency vulnerable to any shifts in U.S. trade policy.