US-Iran Conflict Weighs on Mexican Peso Amid Potential Interest Rate Hike
The Mexican Peso's value has been impacted by the recent US-Iran conflict. Despite earlier gains, the peso erased some of its progress against the US Dollar on Tuesday as the US and Iran launched strikes against each other, causing a decrease in risk appetite.
According to the US Dollar Index (DXY), which measures the performance of the Greenback against six currencies, the dollar is up 0.27% at 99.68. This increase comes as data from the US suggests that the Federal Reserve could raise interest rates due to a solid labor market.
The Mexican economy is expected to grow by 1.30% in 2026 and 1.80% in 2027, according to the Bank of Mexico's survey of private economists. The survey also projects that the USD/MXN exchange rate will end at 17.50 by the end of this year and 18.05 by the end of 2027.