MEXICO CITY, June 5, 2026, 13:03 (CST)
Mexican peso fell hard Friday, with the dollar at about 17.49 pesos after a firm U.S. jobs print sent Treasury yields up and helped the greenback. That wiped out most of the peso’s gains from Thursday’s relief rally.
Jobs data hit as markets were watching if the Federal Reserve would pause or bring another hike this year. Mexico’s central bank says it’s finished cutting after last month’s move to 6.50% on the benchmark rate.
The dollar traded stronger against emerging market currencies, with Mexico’s peso among the first to feel the move. The peso dropped 1.09% to 17.47 per dollar in late morning, according to El Financiero. The won, shekel, Chilean peso and Brazilian real were also weaker against the dollar.
U.S. nonfarm payrolls increased by 172,000 in May, according to the Labor Department. The unemployment rate stayed at 4.3%. Leisure and hospitality, local government, and health care added most of the new jobs.
The report topped the Reuters estimate for 85,000 jobs. It came after higher revisions for March and April. Tom Porcelli, chief economist at Wells Fargo, told Reuters hiring has “picked up” from last year’s slower pace. But he said the labor market isn’t back to overheating. Reuters
Bond yields jumped after the data. The two-year U.S. Treasury yield, seen as closely tied to Fed policy, moved up to 4.15%. The 10-year note also pushed higher, reaching 4.54%. U.S. rate futures showed markets price in a greater chance of a Fed rate hike in December.
The peso slipped in Mexico after gaining on Thursday, when it closed at 17.2881 per dollar, up 0.30%. The currency got a lift from less risk aversion and a weaker dollar, which helped emerging markets. According to El Economista, the peso traded between 17.2677 and 17.3500 that session.
“El dólar se fortaleció con el reporte de empleo de Estados Unidos,” said Gabriela Siller Pagaza, director of economic and financial analysis at Grupo Financiero Base, in a note to Investing.com. Siller said the data bumped up chances the Fed could hike rates later this year. The dollar-peso rate crossed 17.30 early in the Mexico City session and pushed higher as the day went on. Investing.com México
Dollar index up after jobs numbers. The gauge tracks the dollar against six big peers. Marc Chandler at Bannockburn Global Forex told Reuters, “the bar to a Fed change is very high,” though he left room for a rate hike by year-end. Reuters
The peso isn’t only reacting to U.S. jobs data. Faster progress cooling tensions in the Middle East could drive oil lower, ease inflation worries and sap demand for the dollar. The opposite is likely if fighting picks up, especially if that keeps U.S. yields firm and investors cautious.
Job growth in the U.S. was solid, but Reuters pointed out some weak areas. Long-term unemployment went up, and people without jobs stayed out of work longer on average. Those numbers suggest some workers still struggle to get hired, even with stronger payroll gains.
Peso falls again as the week’s drivers stick around—a strong U.S. economy, bets on higher rates and a firm dollar that traders still run to when risk demand softens. USD/MXN jumped more than 1% during the session, according to Trading Economics, with USD/BRL and USD/ZAR moving up too, showing it wasn’t just Mexico slipping.
