Mexican Peso falls below 19.00 with US-Mexico trade negotiations in focus
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USD/MXN drops to 10-month lows as the US Dollar extends losses. US–Mexico trade talks are ongoing, with both nations reportedly engaged in advanced discussions. Fiscal uncertainty in the US weighs on investor confidence and the Greenback. The Mexican Peso (MXN) is trading at its strongest level in 10 months against the US Dollar (USD) on Wednesday, supported by improving risk sentiment and ongoing trade negotiations between Mexico and the United States. At the time of writing, USD/MXN is hovering near 18.90, extending its multi-week downtrend as investors respond to shifting fiscal and trade dynamics. US Treasury Secretary Scott Bessent’s testimony before the House Ways & Means Committee has brought US fiscal policy back into focus, with lawmakers debating the sustainability of extending tax cuts and introducing so-called “revenge tax” tariffs targeting foreign companies. The fiscal uncertainty, combined with structural deficits, is weighing on the US Dollar broadly. Meanwhile, US–Mexico trade talks are ongoing, with both nations reportedly engaged in advanced discussions to ease the 50% tariffs imposed by the US on global steel imports earlier this month. A quota-based system is under consideration, which would allow a defined volume of Mexican steel to enter the US at a reduced tariff rate or duty-free. However, no formal framework has been finalized, and critical details — including quota size and rate thresholds — are still under negotiation. Tensions escalated after the tariff rate was raised from 25% to 50% on June 4, prompting Mexico to file for an exemption last Friday. Officials have warned of retaliatory tariffs if no agreement is reached in the coming days, keeping market participants alert for headline-driven volatility. Mexican Peso daily digest: Key market movers President Donald Trump announced on Truth Social on Wednesday that “Our deal with China is done, subject to final approval with President…
Filed under: News - @ June 11, 2025 9:22 pm