Peso rises for seventh straight day as dollar weakens on US-Iran ceasefire

The Mexican peso rose in value against the US dollar every trading day between March 30 and April 9, appreciating more than 4% in the period.

The peso closed at 17.36 to the greenback on Thursday after appreciating 0.4% during the trading day.

The gain on Thursday came after the peso appreciated 1.6% against the dollar on Wednesday, buoyed by the two-week ceasefire agreement that the United States and Iran reached on Tuesday night Mexico time.

Over the past seven trading days, the peso has appreciated from 18.13 to the dollar to 17.36, a gain of 4.4%.

The 2% appreciation on Wednesday and Thursday coincided with a general weakening of the dollar. The U.S.-Iran ceasefire deal has increased appetite for currencies considered higher risk, such as the Mexican peso.

In a social media post, the director of economic analysis at Banco Base, Gabriela Siller, wrote that the appreciation of the peso on Wednesday morning was the greatest since April 9, 2025, “when Donald Trump announced a pause on the highest reciprocal tariffs that had been announced on ‘Liberation Day‘ [April 2, 2025].”

Inflation rises in March 

National statistics agency INEGI reported on Thursday that Mexico’s annual headline rate was 4.59% in March, up from 4.02% in February. The headline rate was thus above the Bank of Mexico’s 2-4% target range for a second consecutive month.

Month-over-month inflation was 0.86% in March, while the annual core rate was 4.45%, down from 4.50% in February.

The publication of the inflation data for March comes two weeks after the Bank of Mexico cut its benchmark interest rate by 25 basis points to 6.75%. Most analysts had anticipated that the central bank would leave its key rate unchanged.

With reports from El Economista and Reforma  

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