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Mexican peso slides versus dollar amid Iran war jitters
USD/MXN was last around 17.53 after bouncing from 17.41, while rising oil prices and hawkish Fed comments pushed the greenback higher.
The Mexican peso lost ground against the US dollar, with USD/MXN down more than 0.65% for the pair during Friday’s North American session. FXStreet linked the move to a shift toward safe-haven demand for the dollar as the US-Iran conflict appears far from over, even as talks continue.
FXStreet also pointed to market risk conditions, including a sell-off on chip stocks, and to higher oil prices that revived speculation about a possible Fed rate hike. Investors also weighed supportive US inflation signals that trimmed the odds of a September rate increase, alongside modest strength in the US Dollar Index, which rose 0.05% to 100.76.
On the data and policy watch, FXStreet noted that the University of Michigan’s Consumer Sentiment Index rose in July from 50.7 to 54, with short- and medium-term inflation expectations easing. It also cited Cleveland Fed President Beth Hammack as hawkish, warning that inflation remains too high while adding that the labor market is solid and growth and consumer spending are stable.
Looking ahead, FXStreet said Mexico’s near-term calendar is light but the next week includes releases for retail sales, employment data, and early-month inflation. In the US, markets will also focus on jobs data and S&P Global Flash PMIs as Federal Reserve officials enter their blackout period ahead of the July 29 policy meeting.
Latest closeDollar index 100.71 ▲0.2%