Mexican Peso Drops 0.65% Against US Dollar Following Hot US Inflation Data

Key Facts

1The Mexican Peso depreciated 0.65% against the US Dollar, with USD/MXN trading at 18.51.

2Hot US inflation data fueled bets that the Federal Reserve could raise interest rates at the October meeting.

The Mexican Peso depreciated 0.65% against the US Dollar, with USD/MXN trading at 18.51. FXStreet reported that hot US inflation data fueled bets that the Federal Reserve, led by Kevin Warsh, could raise interest rates at its upcoming October meeting.

Higher-than-expected inflation figures boosted the Greenback as markets priced in a more hawkish stance from the Federal Reserve. This price action reflects the significant impact of US macro data on emerging market currencies as monetary policy expectations shift.