The USD/MXN exchange rate will be on the spotlight this week as investors watched the happenings in the US and Mexico. The pair ended last week at 20.67, where it has remained in the past few days. US and Mexico tariffs The USD/MXN pair wavered after Donald Trump threatened sweeping tariffs on Mexican goods that will have a big impact on the two

The Mexican Peso (MXN) recovered some ground after weakening to an almost three-year low of 21.28 against the US Dollar (USD) as United States (US) President Donald Trump and Mexican President Claudia Sheinbaum agreed to pause tariffs for one month as they compromise to cooperate in security and trade. The USD/MXN trades at 20.53, down 0.99%.

The Mexican peso rallied out of a selloff on Monday after 25% U.S. tariffs on Mexican products, expected to be imposed Tuesday, were delayed by a month as Mexico agreed to reinforce its northern border.

President Trump announced he is pausing tariffs targeting imports from Mexico for a month after the country's president agreed to send 10,000 troops to the U.S.-Mexico border.