The Mexican peso strengthened to around 16.89 per US dollar in September, its highest level since May 2024. US nonfarm payrolls rose by 162,000 last month, far exceeding expectations for a 56,000 increase, indicating continued labor-market strength. That resilience is positive for Mexican exports and the broader economy because of the countries’ close trade relationship. Trade tensions between the US and Canada, as well as disputes involving other countries, have also left Mexico relatively favorably positioned in trade terms, although Mexico remains affected by tariffs. Separately, Mexico’s gross fixed investment climbed 7.7% year-on-year in June, above the expected 4.8% expansion. Strong US employment data supports economic stability but also lifted expectations for a September Federal Reserve rate hike, which would strengthen the dollar and reduce the US-Mexico interest-rate differential.