USD/MXN falls to 17.26 after reports of a potential US-Iran deal ease energy price pressures and lift emerging market currencies.
The Mexican Peso climbed to its highest level in a month as speculation over a US-Iran agreement to reopen the Strait of Hormuz weighed on energy prices, reducing global inflationary risks. The USD/MXN pair dropped to 17.26 after peaking at 17.33 earlier in the session.
The rally follows optimism around negotiations, with officials suggesting a deal could be finalized within days. The Peso also benefits from Mexico’s higher interest rates compared to the US, supporting carry trade demand. June’s Consumer Confidence in Mexico rose for a second month but remained down annually.
Markets now await the Bank of Mexico’s rate decision on August 6, with a 93% probability of rates staying at 6.50%. US JOLTS job openings fell to 7.359 million in June, below the 7.4 million forecast.