Quick overview

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The Mexican peso weakened against the US dollar in midweek trading as markets turned more cautious amid the war in the Middle East and Iran’s blockade of the Strait of Hormuz, a key chokepoint for global oil shipments.

The exchange rate closed the session at 17.6698 pesos per dollar, compared with 17.5903 the previous day, according to official data from Bank of Mexico. The move represented a loss of 7.95 centavos, or 0.45%, for the Mexican currency.

During the session, the dollar traded in a range between 17.7098 and 17.5273 pesos. Meanwhile, the US Dollar Index, which tracks the greenback against a basket of major currencies and is calculated by Intercontinental Exchange, rose 0.35% to 99.28 points.

Oil prices back in focus

Iranian forces continue to maintain a blockade in the Strait of Hormuz, a strategic passage for global crude flows. Iranian officials warned that oil prices could climb to $200 per barrel if the United States does not halt hostilities.

The US dollar strengthened as a safe-haven asset, as markets increasingly doubt the projection by Donald Trump that the conflict could end sooner than expected.

At the same time, West Texas Intermediate crude rose nearly 6% to $88.42 per barrel, highlighting the growing pressure in global energy markets.

The exchange rate was also pressured by uncertainty in the energy sector following the closure of the Strait of Hormuz. Technically, analysts point to support around 17.50 pesos per dollar and short-term resistance near 17.70.

Inflation concerns in the U.S.

In the United States, the Consumer Price Index remained stable last month, with annual inflation at 2.4%, in line with expectations.

However, the data still does not reflect the potential impact of the war with Iran, meaning inflation could accelerate in March if energy prices continue rising.