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fxJul 1, 2026, 8:09 PM

Mexican Peso Slides on USMCA Cancellation Fears and Dollar Strength

The Mexican Peso weakened against the US Dollar on Wednesday as speculation about a potential cancellation of the USMCA free trade agreement weighed on the currency, alongside broad-based USD strength. USD/MXN traded at 17.55.

USDMXN

The Mexican Peso lost ground on Wednesday amid growing speculation that the USMCA free trade agreement, signed in 2020, could be canceled. The selloff was compounded by overall strength in the US Dollar, pushing USD/MXN to 17.55.

At the time of writing, the pair was trading higher, reflecting the peso's weakness. No further details on the cancellation rumors have been confirmed, but the uncertainty weighed on the Mexican currency.

Source: FXStreet Forex News