The Mexican peso surged to its strongest weekly close in months, capitalizing on a broad retreat in the US dollar that saw the greenback hit a six-month low against the local currency.
The dollar closed Friday at 17.34 pesos, marking a cumulative depreciation of 1.2% for the week.
The move represents the most significant weekly loss for the US currency against the peso in half a year, signaling a shift in sentiment among Latin American currency traders.
The selling pressure on the dollar is largely driven by a disappointing US jobs report released earlier in the week.
The weak labor data has significantly dampened market expectations for a near-term interest rate hike by the Federal Reserve, reducing the yield advantage that had previously supported the greenback.
Market participants are now adjusting their outlook on US monetary policy, with traders pricing out the likelihood of aggressive tightening in the immediate future.