The Mexican peso is currently being driven by two major forces, pulling in opposite directions.
On the supportive side, the U.S. Supreme Court delivered a significant ruling on President Donald Trump’s use of emergency powers to impose sweeping tariffs. For Mexico, this removes an important layer of trade uncertainty.
However, domestic developments could be weighing on sentiment. Mexican security forces recently killed a major cartel leader which has triggered retaliatory violence in several regions. Events like this can affect tourism, logistics, and investor confidence and introduces a short-term risk premium.
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