The Mexican peso lost 0.19% against the dollar on October 28, 2025, settling at 18.43 units, affected by the yen's strengthening following a US-Japan trade agreement during Donald Trump's East Asian tour. This impact ties to the yen's strategic role in carry trade operations. Meanwhile, other emerging market currencies like the Thai baht appreciated.
The yen's advance impacted the Mexican peso, stemming from its strategic role in carry trade strategies, as Donald Trump sealed trade deals in East Asia. According to Banco de México data, the exchange rate closed at 18.43 units per dollar, up 4 cents from October 27's close.
“The exchange rate was pushed higher by the strengthening of the dollar and the Japanese yen, following the announcement of a trade agreement between the two nations,” said Janneth Quiroz, director of economic and foreign exchange analysis at Monex.
The Japan deal involves a $550 billion investment, with Japanese automakers now facing a 15% tax. During Trump's Seoul visit, it was noted: “The Koreans have a great plan to invest in US shipbuilding, even more than they already have.” This forms the core of a broader US-South Korea agreement limiting US tariffs on Korean products to 15%.
In bank windows, Banamex reported the dollar at 18.85 pesos for selling and 17.83 for buying. In the bond market, the US 10-year yield stands at 3.99%, while Mexico's remains at 8.60%.
Unlike the peso, emerging market currencies such as the Thai baht (0.81%), Russian ruble (0.59%), South African rand (0.39%), Malaysian ringgit (0.34%), and Taiwanese dollar (0.30%) appreciated against the dollar.