Mexican Peso Slides Ahead of Inflation Data

The Mexican Peso has weakened against the US Dollar as traders prepare for upcoming inflation data. The USD/MXN rose by over 0.25% to 16.93, despite a softer dollar in other markets.

Thin liquidity conditions contributed to the move, as financial markets were closed in the US for Labor Day. The escalating Middle East conflict and rising oil prices also pushed the greenback lower against a basket of six currencies.

Inflation expectations in the US continue to rise, with investors pricing in a nearly 61% chance of a 25-basis-point rate hike by the Federal Reserve at its September meeting.