The Mexican peso appreciated to 17.21 per USD from a near four-month low of 17.60 recorded on July 24th, after Banxico left its benchmark interest rate unchanged at 6.50% and signaled it expects to maintain its current policy stance. The central bank kept rates steady for a second consecutive meeting, as policymakers weighed easing headline inflation and softer economic activity against persistent services inflation and risks stemming from the Middle East conflict. Banxico reiterated that future decisions will be data-dependent and emphasized the uncertainty linked to geopolitical tensions and global trade policies. The peso also continued to be supported by a wide interest rate differential, with Mexico’s policy rate at 6.50% compared with the Federal Reserve’s 3.50%–3.75% target range.