Mexican Peso Gains Slightly Against Dollar Amid Middle East Tensions

Mexico City — The Mexican peso edged higher against the U.S. dollar on Wednesday, gaining ground despite ongoing geopolitical uncertainty stemming from the conflict between the United States and Iran.

The national currency appreciated 0.24%, closing at 17.75 pesos per dollar. This represented a gain of four centavos compared to Tuesday’s close. The advance came even as Iran rejected a ceasefire proposal promoted by U.S. President Donald Trump.

Financial markets have shown high volatility in recent days, reacting to both expectations of a possible truce and the persistent threat of attacks on key energy infrastructure in the Middle East.

Iran, for its part, put forward an alternative proposal that includes recognition of its sovereignty over the strategic Strait of Hormuz. Approximately 20% of the world’s oil trade passes through the strait, keeping investors on alert.

Analysts say the exchange rate could remain in a range between 17.65 and 17.85 pesos per dollar in the short term. Domestic factors, such as weak economic growth data in Mexico, are limiting the peso’s appreciation, while a potential de-escalation of the international conflict could strengthen it further.

Should a ceasefire agreement materialize, the exchange rate could fall to around 17.60 units, according to estimates.

In bank transactions, the dollar was being sold at 18.20 pesos and bought at 17.20 pesos per unit.

In the debt market, the yield on the U.S. 10-year Treasury bond stood at 4.33%, while its Mexican equivalent reached 9.45%.

Internationally, other currencies showed depreciation, including the Australian dollar and the Norwegian krone (0.50%), the Argentine peso (0.30%), the New Zealand dollar (0.29%), and the Japanese yen (0.19%), reflecting a global environment of caution regarding the conflict’s development.