The Mexican peso firmed 0.3% on Friday, trading near 17.31 as markets tracked geopolitical developments, notably US–Iran negotiations. Persistent uncertainty in the Middle East—especially potential disruptions around the Strait of Hormuz—continues to underpin a geopolitical risk premium. The US dollar remains under pressure, with inflation largely in line with expectations and the Federal Reserve sticking to a cautious, data‑dependent approach that caps upside in Treasury yields. Meanwhile, US growth remains resilient but uneven, keeping markets finely balanced between inflation and slowdown concerns. Broad risk appetite is supporting emerging‑market currencies, and the peso is drawing particular support from its attractive carry and wide interest rate differential versus the US. Year‑to‑date, USD/MXN has fallen 14.79%, reflecting dollar softness and sustained inflows into Mexican assets.