2026.03.0315:05:09UTC+00Mexican Peso Tumbles to 6-Week Lows

The Mexican peso weakened toward 17.7 per dollar on Tuesday, reaching a six-week low as a large trade deficit and energy price shocks left the currency exposed to a global shift into safe-haven assets. The escalation of the US-Iran conflict and the effective closure of the Strait of Hormuz have intensified risk-off sentiment, driving investors toward the US dollar. At the same time, Mexico reported a record trade deficit of 6.48 billion dollars in January, as oil exports plunged 33.5% and automotive shipments to the US fell sharply by 9%. Although fourth-quarter GDP was revised up to 0.9%, signaling some resilience at the end of the year, the 10% global US import tax introduced on February 24 threatens to wipe out these gains and further constrain Mexico’s exports. In addition, Banxico’s decision to keep interest rates at 7% in February, amid persistently high core inflation of 4.52%, has not been enough to shield the peso from the dollar’s renewed strength.