Peso's Rise Halted by US Inflation Concerns

The Mexican peso's recent strong run came to an abrupt end after US Federal Reserve Chairman Kevin Warsh expressed concern about inflation.

Speaking at the Fed's annual Jackson Hole symposium, Warsh said that 'we have work to do' to ensure core inflation is heading toward the target of 2%.

The peso had been trading above 17 to the US dollar earlier in the day but retreated after Warsh's comments and those made by other Fed officials on Thursday.

Despite this, the peso remains one of the best-performing emerging market currencies, with a strong performance attributed to 'lower trade-risk premia, political stability, and solid macroeconomic conditions.'