Quick overview

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The Mexican peso weakened slightly against the U.S. dollar on Friday’s session, though it still managed to post a monthly gain as investors closely monitored ongoing negotiations aimed at ending the conflict between the United States and Iran.

The exchange rate closed at 17.3401 pesos per dollar, according to official data from Bank of Mexico. Compared with Thursday’s close of 17.3164, the peso lost 2.37 centavos, or 0.14%.

During the session, the dollar traded within a range of 17.3066 to 17.4087 pesos. Meanwhile, the U.S. Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, slipped 0.11% to 98.91.

Markets await Trump’s decision on Iran deal

Donald Trump said in a social media post that he would meet with advisors in the White House Situation Room to make a final decision regarding a potential agreement with Iran that has been under negotiation for several days.

Reports published Thursday indicated that Washington and Tehran had reached a preliminary agreement to extend the ceasefire for 60 days and lift restrictions on commercial shipping through the Strait of Hormuz. However, the deal still required Trump’s final approval.

Analysts noted that the dollar lost some upward momentum after briefly touching an intraday high of 99.18 on the DXY, as investors assessed the latest U.S. inflation data and awaited further developments regarding the Strait of Hormuz.

Peso posts monthly gain despite weekly decline

On a weekly basis, the peso posted a modest decline. Compared with last Friday’s close of 17.3198 per dollar, the currency weakened by 2.03 centavos, or 0.12%.

However, the peso still ended May with a positive performance overall. Against April’s closing level of 17.4688, the Mexican currency appreciated by 12.87 centavos during the month, equivalent to a 0.74% gain.