Mexican Peso Gains as Dollar Weakens Ahead of Easter Holidays

Mexico City, Mexico – The Mexican peso strengthened against the U.S. dollar during trading on Wednesday, April 16, 2025. The local currency benefited from a weaker greenback and better-than-expected economic growth figures from China.

The exchange rate finished the day at 19.9622 pesos per dollar, a significant improvement from the previous day’s closing rate of 20.1235. According to official data from the Bank of Mexico (Banxico), this movement reflects an appreciation of 16.13 cents or 0.80 percent.

The dollar fluctuated between a high of 20.1361 pesos and a low of 19.9555 during the session. The U.S. Dollar Index (DXY), which gauges the greenback against a basket of six major currencies, fell by 0.82 percent to 99.34 points. “The U.S. dollar extended its losses today as uncertainty weighed heavily. The currency hovered near multi-year lows despite positive retail sales figures,” noted Quásar Elizundia, a strategist at Pepperstone.

China’s economy grew by 5.4 percent in the first quarter, surpassing the expected 5.1 percent. This growth was fueled by substantial government stimulus and sustained momentum since late 2024. These robust economic figures supported emerging market currencies like the peso, which also capitalized on the dollar’s decline amidst ongoing uncertainty surrounding tariffs imposed by U.S. President Donald Trump on China.

The decline of the dollar, combined with China’s economic growth data, overshadowed positive reports from the United States, where retail sales increased by 1.4 percent in March, beating the analysts’ forecast of 1.3 percent. “With the dollar’s vulnerability increasing, Trump initiated a new investigation into potential tariffs on critical minerals and maintained threats against sectors such as pharmaceuticals, copper, and semiconductors,” Elizundia added in his clients’ note.

Market participants also processed a speech by Federal Reserve Chair Jerome Powell, who stated that the Fed is well-positioned to await more clarity on the effects of tariffs before making monetary policy adjustments. Powell acknowledged that growth appears to be slowing in the U.S., with modest increases in consumer spending and a surge in imports to avoid tariffs likely impacting estimates.