The Mexican peso strengthened sharply over 11–12 June, breaching the psychological MXN19 per US dollar for the first time since August 2024. The currency traded as high as MXN18.83 and settled at MXN18.92 in interbank dealing on Thursday, capping a two-day gain of roughly 1.2%. The rally coincided with a broad sell-off in the greenback. The US Dollar Index slid below 98 for the first time since March 2022, while the Bloomberg Dollar Spot Index touched its lowest level since April 2022. Market data show the dollar has lost about 8% so far this year, pressured by weaker-than-expected US inflation — consumer prices rose just 0.1% in May, leaving the annual rate at 2.4% — and uncertainty created by President Donald Trump’s warning of additional tariffs on countries that are not in active trade negotiations with Washington. Analysts say Mexico’s relatively high interest-rate differentials and a steady flow of foreign investment have amplified the peso’s gains. President Claudia Sheinbaum welcomed the move, calling the sub-19 exchange rate evidence of investor confidence in Mexico’s economy. Equity performance was more muted: the benchmark Bolsa Mexicana de Valores slipped modestly even as the currency advanced.