Forex
Home›Forex›EM Currencies›Mexican peso rises as risk sentiment improves after US…
Mexican peso rises as risk sentiment improves after US-Iran truce
USD/MXN is around 17.54 after Mexico’s June CPI fell to 3.37% year over year, the lowest since December 2020.
FXStreet reported the Mexican peso strengthened against the US dollar on Thursday, gaining more than 0.2% as risk appetite improved following two days of US-Iran hostilities that have ended, even as President Donald Trump warned the arrangement might be “over.” The USD/MXN pair was quoted near 17.54 after reaching a daily high of 17.57.
The peso move also reflected weaker broad dollar conditions and Mexico’s inflation data. Mexico’s June CPI dropped to 3.37% year over year from 3.94% the prior month, the lowest level since December 2020, and it marked the third straight month of declines.
FXStreet said the softer inflation reading could ease pressure on the Bank of Mexico, or Banxico, which last month kept its benchmark rate unchanged at 6.50% and indicated the reference rate would remain steady through the end of 2026. Banxico’s minutes also pointed to negotiations between the US and Iran as a factor that helped cool inflationary pressures.
On the US side, FXStreet noted that recent Federal Reserve material showed most officials supported additional tightening, while those favoring a hike preferred to pause and gather more data. It added that money markets assign an 87.0% probability of a rate hike in 2026, and traders are now looking ahead to upcoming CPI, PPI, jobless claims, and housing data.