The Mexican peso closed at its best level against the dollar since June 2024, despite the uncertainty surrounding the ‘clash’ between donald Trump and Europe over Greenland, and the low level of liquidity in the markets due to the Martin Luther King holiday in the US.
According to the Bank of Mexico (Banxico), the Mexican peso appreciated 0.38 percent, bringing the exchange rate to 17.58 units, 6 cents less than on Friday, January 16th.
“This closure of financial markets in New York drastically reduces liquidity and transactional volume, leaving the peso in a zone of technical consolidation as local investors begin to digest a weekly agenda loaded with basic data (retail sales, bi-weekly inflation and economic activity),” said Felipe Mendoza, CEO of IMB Capital Quants.
The analyst added that Donald Trump’s offensive to acquire Greenland is also causing ‘noise’ in the market: Over the weekend, the US president announced a 10 percent tariff on European countries that support Greenland.
