Mexican Peso Rallies as Trade Talks Gain Momentum

The Mexican peso has seen some relief against the US dollar as trade talks between Mexico and the US gain momentum. According to Societe Generale, USD/MXN has moved back below 17.00 following recent discussions between Mexican officials and their US counterparts.

Mexico's Economy Minister Ebrard met with US Commerce Secretary Howard Lutnick at the G20 summit to discuss trade issues. The meeting came after a widening of the US-Canada trade rift.

The bank highlights a sharp drop in Mexico's car imports from China, falling 31.1% year-over-year in the first half of this year to 158,571 units. This decline is attributed to tariff adjustments aimed at protecting local jobs.