Mexican Peso surges to five-month high on soft US jobs data

The Mexican Peso rallied sharply against the US Dollar following a weaker-than-expected US jobs report. USD/MXN dropped to 17.18, marking a fresh five-month low for the pair.

The soft labor market data boosted risk sentiment and sparked a sell-off in the dollar. Markets are increasingly speculating that the Federal Reserve will refrain from raising interest rates in 2026, further undermining the greenback.

The peso's gains reflect a broader shift in appetite toward risk assets, as improving global sentiment drove investors away from the safe-haven dollar.