The Mexican peso led a broad rally in Latin American currencies on Friday, July 10, as a decline in the US dollar’s strength allowed emerging-market assets to recover ground.
The peso, along with the Colombian and Chilean pesos, posted the most significant gains among regional currencies during the session, according to market data from Bloomberg.
The shift in sentiment marks a continuation of the peso’s modest recovery against the greenback, which began earlier in the week.
Traders have been navigating a period of reduced volatility in major economic data releases, allowing risk appetite to stabilize.
The dollar’s retreat provided a tailwind for emerging-market currencies, which had faced pressure from global risk-off flows in recent weeks.
This repricing follows a period of heightened uncertainty driven by geopolitical tensions, including renewed military friction between the United States and Iran.