The Mexican Peso weakens 0.30% against the USD amid geopolitical risks and stronger US economic data.
The Mexican Peso fell 0.30% against the US Dollar on Thursday, with USD/MXN trading at 17.43 after hitting a daily low of 17.37. Escalating Middle East tensions and rising energy prices fueled risk aversion, boosting demand for the Greenback.
US economic data reinforced the Dollar’s strength, as Retail Sales grew 0.2% MoM in June, while Initial Jobless Claims dropped to 208K, below the forecast of 217K. The US Dollar Index (DXY) rose 0.27% to 100.76, supported by a 2 basis point increase in 10-year Treasury yields to 4.569%.
Fed officials adopted a hawkish tone, with Dallas Fed’s Lorie Logan advocating a slightly higher policy rate to balance risks, while Kansas City Fed’s Jeffrey Schmid noted labor market stability.