Mexican Peso Holds Firm Amid Fiscal Package Presentation

The Mexican Peso (MXN) held its ground against the US Dollar (USD) on Wednesday, following Mexico's government presentation of its fiscal package in Congress. The USD/MXN pair traded at 16.89, down 0.09% near yearly lows.

Mexico's budget discipline is seen as a key factor in keeping the MXN pinned near two-year lows. The country's budget projects a narrower deficit for 2027, estimated to contract to 3.9% of GDP. This year's deficit is expected to be at 4.1% of GDP.

The government also aims to reduce its support for Petroleos Mexicanos (PEMEX), the nation's oil and gas company, by almost 70%. The move is seen as a way to help PEMEX register a surplus in 2027.