Peso Weakens to 17.99 Amid US-Iran Headlines, Higher Yields
The Mexican peso weakened against the US dollar on Monday as risk appetite waned due to mixed headlines about US-Iran talks. USD/MXN traded at 17.99, up 1.80%, with higher US Treasury yields supporting the greenback and the US Dollar Index (DXY) rising 0.14% to 101.17.
Federal Reserve Governor Lisa Cook pointed out ongoing inflation pressures linked to AI and regional hostilities. Banxico Governor Victoria Rodríguez stated that recent peso moves were consistent with existing inflation projections, which still point to inflation easing towards the 3% target.
Markets priced a 92% probability of Banxico holding rates at 6.50% at the November 5 meeting. The USD/MXN pair moved above the 200-day SMA at 17.41, with the RSI above 70; resistance levels cited were 18.00, 18.16, 18.53, 18.77 and 19.00.