The Mexican peso experienced fluctuations against the US dollar between August 18 and August 20, 2025. On August 18, the peso depreciated, opening around 18.83 pesos per dollar and reaching approximately 18.85 by the end of the day. This decline was influenced by a general strengthening of the US dollar amid market anticipation of a meeting between Donald Trump and Volodímir Zelenski and adjustments in expectations regarding US interest rate cuts. The peso was noted as the second-worst performing currency among 16 major currencies tracked by Bloomberg on August 19, with the exchange rate opening near 18.86 pesos per dollar and continuing to weaken, reaching its lowest level in 11 sessions at around 18.9069 pesos per dollar. The depreciation was linked to market uncertainty ahead of key Federal Reserve signals and speeches, including those by Fed Chair Jerome Powell. On August 20, the peso reversed course, appreciating against the dollar amid reduced US dollar demand and pressure from Donald Trump on the Federal Reserve. The exchange rate improved to approximately 18.75 pesos per dollar by the close of the day, representing a 0.33% gain according to Banxico data. The peso's recovery was also associated with investor anticipation of Federal Reserve minutes and the Bank of Mexico's communications. Throughout this period, the dollar blue rate in Mexico showed a notable increase, closing nearly 50 pesos above the official wholesale rate on August 18.