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Mexican peso strengthens as USD/MXN nears key 17 level

USD/MXN was last near 17.1 after Mexico’s June industrial output improved, while traders held back ahead of US July CPI expectations for a slight slowdown.

Reported · Written up by our desk · Major Pairs

The Mexican peso rose against the US dollar, with USD/MXN trading around 17.08 after gaining 0.32% by Tuesday’s close, a level not seen since June 2024, according to FXStreet.

Mexico’s industrial output for June improved from a 0.8% contraction to a 0.2% expansion, with the 12-month change rising to 1.7% versus May’s -0.7% print, helping drive USD/MXN lower, the outlet said.

FXStreet added that traders paused near the 17.00 milestone as they awaited US July inflation data scheduled for Wednesday. Expectations call for headline inflation to ease from 3.5% to 3.4% year over year, with core inflation slowing from 2.6% to 2.5%.

The report said a softer US CPI reading would be positive for the peso by reducing the need for further rate hikes, while the US dollar index, DXY, was at 99.80 after touching a two-month low of 99.40. FXStreet also cited Citi’s Mexico expectations survey showing all analysts forecast Banxico’s key policy rate at 6.50% through year end, alongside a median forecast for USD/MXN to finish the year around 17.90.

Latest closeDollar index 99.81 ▲0.0%

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