The Mexican peso strengthened against the US dollar on Friday, supported by a pullback in crude oil prices and ongoing trade discussions between Mexico and the United States.
Traders are closely monitoring the adjustment in energy markets, which has provided a tailwind for the Mexican currency.
The move follows a period of volatility driven by geopolitical tensions in the Middle East, which had previously weighed on risk sentiment and supported the greenback as a safe haven.
In addition to commodity dynamics, the peso is benefiting from the backdrop of negotiations to adjust the US-Mexico-Canada Agreement (T-MEC).
Market participants are assessing the potential impact of these talks on future trade flows and economic stability in the region.
The currency's recent performance reflects a broader retreat in the US dollar, which softened following the release of US producer price data earlier in the week.