The peso falls slightly on Trump’s new tariff threats

The peso fell marginally on Monday as investors considered the impact of US President Donald Trump’s new threats to impose 25% tariffs on all steel and aluminum imports.

The peso was trading at 20.5772 per dollar, down 0.05%, at the start of a week that would see the release of US inflation data and Federal Reserve Chairman Jerome Powell’s appearance before the House of Representatives.

Locally, participants assimilated comments from the head of the Bank of Mexico (Banxico), Victoria Rodriguez, who stated in an interview with Reuters that Mexico’s inflationary environment could allow for further reductions in the benchmark interest rate.

Last week, Banco de México reduced the main rate by 50 basis points to 9.5%, double the 25 basis point cuts it had been making since it began cutting borrowing costs from an all-time high of 11.25% in March 2024.