(Changes slug from MEXICO-PESO, adds background)
MEXICO CITY, May 29 (Reuters) - The Mexican peso has seen a "favorable" trend, but is still subject to volatility that requires authorities to be "cautious, careful and responsible," Finance Minister Jose Antonio Meade said at an event in Mexico City on Monday.
The peso was battered to a record low in January on worries that U.S. President Donald Trump would slap tariffs on Mexican-made goods.
But the currency has rallied back as Trump's administration has taken a more conciliatory tone in talks with Mexico and Canada to renegotiate the North American Free Trade Agreement (NAFTA).
The peso was little changed on Monday, with low volume due to the U.S. Memorial Day holiday, as it traded around 18.49 per dollar, close to levels seen last week that were the strongest since the surprise of Trump's November win.
The peso has been the best performing major currency with a more than 12 percent gain this year. (Reporting by Ana Isabel Martinez; Editing by Sandra Maler)