Quick overview

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The peso strengthened on Friday after solid U.S. labor data helped improve risk sentiment, closing the week with cumulative gains and marking its strongest finish since late February.

The Mexican currency appreciated in Friday’s trading session, supported by stronger-than-expected employment figures in the United States. The peso ended the week higher, reaching its best closing level since late February.

The exchange rate settled at 17.1934 pesos per dollar, compared with 17.2693 in the previous session, according to official data from Banco de México (Banxico). This represented a daily gain of 7.59 cents, or 0.44%.

The dollar traded within a range between a high of 17.3295 and a low of 17.1918. Meanwhile, the U.S. Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, fell 0.17% to 97.90 points.

U.S. nonfarm payrolls increased by 115,000 jobs in April, well above economists’ expectations of around 62,000. The unemployment rate remained steady at 4.3%.

Weekly gain of 25 cents

Over the week, the Mexican peso appreciated alongside other risk-sensitive assets, supported by a weaker U.S. dollar and expectations of progress toward a potential peace agreement between the United States and Iran.

Friday’s close marked the strongest level for the peso since late February. Compared with LSEG’s reference rate of 17.4460 from the previous Friday (a holiday session without Banxico data), the currency gained 25.26 cents, or 1.45%.

In recent sessions, the USD/MXN pair has traded within a tight range between 17.30 and 17.19, with analysts noting a potential move toward the next support level at 17.12. A break below that threshold could accelerate further peso appreciation.

Traders also remained focused on developments in the U.S.–Iran conflict. U.S. Secretary of State Marco Rubio said he expected a response from Iran, potentially on Friday, regarding a proposal to end the conflict.

Looking ahead, U.S. inflation data due next week will be closely watched, as it could help shape expectations for Federal Reserve interest rate policy, particularly amid rising energy-driven inflation pressures linked to higher oil prices.