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2025.05.2816:45:34UTC+00Mexican Peso Eases from 8-Month High

The Mexican peso has decreased in value to 19.4 per USD, retreating from its peak of 19.2, reached on May 23rd. This decline is attributed to a strengthened US dollar and a dovish outlook for the Bank of Mexico. The US dollar regained some lost ground that initially arose from concerns over a potential trade war with the European Union and issues surrounding unsustainable fiscal spending linked to a new tax bill. This recovery has impacted emerging market currencies, including the peso. Meanwhile, anticipation remains that the Bank of Mexico will continue its rate-cutting cycle this year, following recent core inflation measures that met expectations. The Bank of Mexico, known as Banxico, has implemented three consecutive cuts of 50 basis points each in the current cycle, bringing its policy rate down to 8.5%.

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