Quick overview
Live USD/MXN Chart
USD/MXN
The Mexican peso weakened against the U.S. dollar on Tuesday, as growing concerns over the escalating conflict between Israel and Iran rattled markets.
The pressure intensified after former U.S. President Donald Trump abruptly left the G7 summit ahead of schedule.
The exchange rate closed the session at 19.0145 pesos per dollar. Compared to Monday’s official close of 18.9114—according to data from Mexico’s central bank (Banxico)—the peso registered a loss of 10.31 centavos, or 0.55%.
USD/MXN
During the day, the dollar traded between a high of 19.0521 and a low of 18.9205 pesos. Meanwhile, the U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, rose 0.67% to 98.81 points.
Trump’s early departure from the G7 summit included the cancellation of several meetings, notably one with Mexico’s President Claudia Sheinbaum, where key issues such as trade, remittances, and the shared border were expected to be discussed.
On his social media platform, Truth Social, Trump called for Iran’s “unconditional surrender” and warned that U.S. patience was “running out,” though he clarified he had no current plans to “take down” the Islamic regime. These statements further fueled investor anxiety about the situation in the Middle East.
Fed Policy Decision and Impact
At the same time, markets are bracing for Wednesday’s monetary policy announcement from the Federal Reserve. While no rate changes are expected, attention will focus on the Fed’s updated economic projections and comments from Chair Jerome Powell.
For the peso, this decision won’t go unnoticed. If the Fed maintains a hawkish stance and signals no near-term rate cuts, emerging market currencies—including the peso—could come under renewed pressure.
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
