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Mexican peso jumps to a two-year high as US dollar weakens
USD/MXN fell 0.27% to 16.95 after US Treasury doubled the size of its long-duration bond buyback, helping yields retreat.
The Mexican peso rose to a two-year high on Wednesday, strengthening as the US dollar weakened alongside falling US yields. FXStreet reports USD/MXN was last at 16.95, down 0.27%, after the US Treasury doubled the size of its long-duration bond buyback.
The article links the improved market tone to lower yields and notes traders are also watching the Federal Reserve’s last meeting minutes release later in the day. It also points to the Bank of Mexico minutes scheduled for Thursday, followed by US retail sales on Friday.
On the US economic calendar, the piece cites Initial Jobless Claims, a speech by St. Louis Fed President Alberto Musalem, and S&P Global Flash PMIs. For retail sales, it says expectations call for 0.1% month over month growth in June, after a 0.6% contraction in May.
FXStreet adds that the peso has been supported by the US decision to delay 50% tariffs on Canada. It also describes technical levels, saying USD/MXN remains below longer-term averages and that the relative strength index at 35.9 suggests downside pressure persists.