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Mexican peso weakens as USD/MXN rises ahead of US inflation data

USD/MXN was last at 16.93, with markets also factoring a nearly 61% odds of a 25-basis-point Fed hike in September.

Reported · Written up by our desk · Major Pairs

The Mexican peso lost ground versus the US dollar as USD/MXN moved higher, trading around 16.93 after gaining more than 0.25% during a period of thinner liquidity.

FXStreet said the dollar was also pressured by rising oil prices after the US retaliated following an attack on oil vessels linked to Tehran, while US inflation expectations continued to climb.

Investors are now looking ahead to US inflation releases on the producer and consumer sides, with expectations building for about a 61% chance the Federal Reserve delivers a 25-basis-point rate hike at its September 15 to 16 meeting.

In Mexico, private economists expect Mexico’s main reference rate to stay at 6.50% through the rest of 2026 and throughout 2027, with Mexico set to publish August 12-month inflation later and industrial output for July on September 11.

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