The Mexican peso depreciated 2.6 percent, closing the day and the week at 20.44 units per dollar, this Friday, April 4, 2025.

The Mexican Stock Exchange (BMV) was also affected, along with the Mexican currency, by a widespread collapse in foreign markets.

This scenario occurred amid concerns of a global recession after China announced retaliatory measures to the tariffs announced this week by Donald Trump.

Amid the rapid wave of liquidations, Federal Reserve Chairman Jerome Powell acknowledged that the president's taxes could bring.

"There is a lot of uncertainty and in the meantime everyone is selling because this implies the natural scenario of stagflation - economic stagnation with inflation," said Marco Oviedo, senior strategist for Latin America at the firm XP Investments.

"Who's going to invest in this situation?" he asked.

Impact on other markets

At the Chicago Mercantile Exchange, speculative positions remained in favor of an appreciation of the Mexican currency, however, they decreased after three weeks of increases.

"For now, the peso has respected the resistance of 20.50 pesos per dollar, but if risk aversion continues, it could head toward 20.80 pesos per dollar," said analysts at Banco Base.

The benchmark S&P/BMV IPC .MXX stock market index fell 4.87 percent to 51,452.73 points, also its worst day since the June general elections.

Shares in mining company Industrias Peñoles led Friday's declines with a severe 14.85 percent drop to 343.36 pesos, due to a decline in metal prices following the announcement by China, the world's largest consumer of metal commodities.

The cement company's stock was the second hardest hit by the session's jitters, plummeting 10.67 percent to 174.08 pesos. The company's main market is the United States, with more than two-thirds of its sales.

On the other hand, Kimberly-Clark Mexico stocks, dedicated to the manufacture of personal care products, stood out as the only ones on the S&P/BMV IPC that closed in positive territory, with a slight return of 0.54 percent to 33.25 pesos.

In the secondary debt market, the yield on the 10-year bond MX10YT=RR fell 11 basis points to 8.95 percent, while the 20-year rate MX20YT=RR closed at 9.49 percent, nine basis points below its previous close.