Mexican Peso rout deepens as USD/MXN blasts through 18.30
The Mexican Peso collapses, extending its depreciation by over 1.50% in the day as the Greenback strengthens sharply amid growing fears that the Middle East conflict will be prolonged, keeping energy prices under pressure. The USD/MXN trades at 18.35, after bouncing off daily lows of 18.06.
The Mexican Peso continues to depreciate, with the USD/MXN exchange rate surging past 18.30 following a sharp rise in the US dollar amid worries over an extended Middle East conflict and its impact on energy prices. The Greenback remains a safe-haven asset, bolstered by the US economic data, higher Treasury yields, and the Federal Reserve's hawkish stance.
Mexico's economy showed a slight improvement in September's manufacturing activity, but the outlook still appears fragile. The Bank of Mexico's economists' poll forecasts the USD/MXN exchange rate to reach approximately 17.50 by the end of 2027, and the US Dollar Index is currently at 102.16, indicating a weakening of the US dollar.
Market analysts suggest that the Mexican Peso may face consolidation or a pullback despite being in a bullish phase, and the key support levels at around 17.22 and 16.8866 will determine the currency's future movement.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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