Weaker-than-expected US inflation figures reduce Fed rate hike bets, lifting the MXN against the USD by 0.29%
The Mexican Peso rose 0.29% against the US Dollar in North American trading after US inflation data eased pressure on the Federal Reserve to raise interest rates further. The USD/MXN pair traded lower as softer inflation readings reduced expectations for aggressive monetary tightening.
Earlier data showed US inflation cooling, contrasting with recent hawkish Fed signals. The move extends the Peso’s recent strength, supported by Mexico’s relatively high interest rates and stable economic outlook.
Markets now await further US economic indicators to gauge the Fed’s next steps, with the Peso’s gains reflecting shifting rate differentials.