Mexico City, June 6, 2026, 14:58 (CST)
Peso slides most since March as jobs data hits FXThe Mexican peso slumped on Friday, falling 1.1% to close at 17.4793 per dollar—its biggest daily loss since March. A stronger U.S. jobs report pushed the dollar up and fueled expectations that U.S. interest rates could stay higher for longer. For the week, the peso dropped 0.8%.
The peso is strong right now thanks to carry, or the yield pickup for holding Mexico’s currency. Mexico keeps a big yield edge, but that doesn’t stand out as much when U.S. Treasury yields rise and the Fed is less likely to cut rates.
Nonfarm payrolls increased by 172,000 in May and the U.S. unemployment rate stayed at 4.3%, the Bureau of Labor Statistics said. Job growth showed up in leisure and hospitality, local government, and health care. Financial activities dropped jobs.
Fast moves in markets after jobs data. U.S. rate futures now price in a 65% shot at a Fed hike in December, Reuters said, up from 48% before the numbers. The two-year Treasury yield was up to 4.15%, and the 10-year at 4.54%. Bannockburn Global Forex’s Marc Chandler said, “the bar to a Fed change is very high,” but he still thinks there’s “a good chance of a hike before the end of the year.” Reuters
Mexico’s peso weakened on Friday, pushing the exchange rate to 17.4793 per dollar from 17.2881 on Thursday, a drop of 19.12 centavos, Banxico data reported by El Economista showed. The peso traded between 17.2653 and 17.5360 during the session. The ICE dollar index added 0.65% to 100.06 against major currencies.
The peso dropped on a stronger dollar, Gabriela Siller, director of economic analysis at Banco Base, said. She pointed to the U.S. jobs report, which beat estimates and came with higher revisions for previous months. Banxico data, cited by El Financiero, showed the peso lost 0.80% for the week.
The dollar looked strong across the board, with Reuters reporting it on track for a weekly gain of more than 1%. The yen weakened past 160 per dollar, while the euro fell 0.75% and sterling dropped 0.64% after the jobs data, according to Reuters.
Banxico lowered its key rate to 6.50% in May and signaled the end of a two-year rate cutting cycle. The central bank called it “appropriate to maintain the reference rate at its current level.” The peso still gets some support from yield, but there’s less cushion now if U.S. rates increase. Reuters
Geopolitics stayed in focus. Reuters reported Gulf hostilities and oil trading over $90 a barrel helped push up safe-haven demand for the dollar. Investing.com also pointed to Middle East tensions and lighter speculative peso positions as factors in the market’s risk-off mood this week.
For small businesses and households, the story is basic: the dollar is close to 17.48, up from 17.29 the previous day. El Informador pointed out that this move is noticeable for buyers of dollars, those handling remittances or moving savings, calling it a test for the “superpeso” idea after the first week of June. El Informador
Peso watchers see the trade could flip if the Fed keeps rates steady this month and energy worries ease off, as the currency’s yield might bring buyers back. But if U.S. yields move up or risk-off stays in place, the peso may stay weak. Monex put USD/MXN in a 17.41 to 17.57 range for Monday.
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