Mexican Peso Stands Firm as Fiscal Package Boosts Confidence

The Mexican Peso (MXN) has managed to hold its ground against the US Dollar (USD), despite expectations of a potential comeback. The currency's resilience is largely attributed to Mexico's government fiscal package, which was presented in Congress on Wednesday.

According to the plan, Mexico aims to achieve a narrower deficit and reduce support for Petroleos Mexicanos (PEMEX) by around 70% next year. This move is expected to contribute to a primary fiscal surplus of 0.6% of GDP in 2027, excluding debt payments.

The USD/MXN exchange rate currently stands at 16.89, down 0.09% from the previous day and near two-year lows. However, traders are keeping an eye on US inflation data, which is expected to be released soon. A higher-than-expected reading could trigger a recovery in the USD/MXN above 17.00.