Peso Weakens as US-Iran Headlines and Yields Boost Dollar

The Mexican peso has weakened against the US dollar as risk appetite deteriorated following mixed headlines on US-Iran talks. The USD/MXN pair traded at 17.99, up 1.80%, while higher US Treasury yields supported the dollar. The US Dollar Index (DXY) was up 0.14% at 101.17.

US President Donald Trump rejected an Axios report that Washington had offered sanctions relief and the unfreezing of Iranian assets. The Middle East situation remained unresolved, even as Iran's foreign minister was due to meet mediators in New York.

Federal Reserve Governor Lisa Cook flagged ongoing inflation pressures linked to AI and regional hostilities. Banxico Governor Victoria Rodríguez said recent peso moves were consistent with existing inflation projections that still point to inflation easing towards the 3% target.