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Mexican peso strengthens as USD weakens, USD/MXN falls near 16.99
USD/MXN traded around 16.99 after a daily high of 17.04, while bets for a September 16 Fed rate hike rose to about 65% in Prime Terminal data.
The Mexican peso gained about 0.20% versus the US dollar, lifting pressure off USD/MXN, which was trading around 16.99 after reaching a daily high near 17.04, according to FXStreet.
FXStreet said the move reflected broader US dollar weakness, with the US Dollar Index down about 0.25%, even as risk sentiment deteriorated after escalation of the US-Iran conflict pushed energy prices higher.
Developments overnight pushed West Texas Intermediate above the $85.00 threshold after strikes by the US and Iran, a backdrop that FXStreet said weighed on sentiment but did not prevent traders from selling the greenback.
FXStreet also pointed to shifting rate expectations, noting that Prime Terminal data showed odds near 65% for a 25 basis point hike at the September 16 meeting, alongside upcoming US data including ISM Manufacturing and Services PMIs and Nonfarm Payrolls for August.
Latest closeDollar index 99.68 ▲0.5%