Peso Surges to Two-Year High on US Treasury Bond Buyback

The Mexican Peso has surged to a two-year high of 16.94 against the US Dollar, thanks in part to the US Treasury's decision to double the size of its long-duration bond buyback.

This move has led to falling US yields and a weakening of the USD, causing the MXN to rally.

Despite ongoing uncertainty surrounding the US-Iran conflict, the market mood has improved, with investors eyeing upcoming economic data releases from the Federal Reserve and Bank of Mexico.

Janneth Quiroz, Monex's Director of Economic Analysis, notes that the US decision to delay 50% tariffs on Canada is also favorable for the Peso.