The Mexican peso faces pressure after failed US-Iran talks and President Trump's April 12 announcement closing the Strait of Hormuz, reversing last week's gains from the truce. Analysts expect dollar strength, higher oil, and stock declines when markets open Monday, April 13.
Failed US-Iran nuclear negotiations ended the two-week truce announced last week, with President Trump ordering the Strait of Hormuz closure amid rising tensions with Israel.
The peso had rallied sharply on the truce news, gaining nearly 25 cents to close at 17.3186 per dollar on April 8 as the dollar weakened 1.4%.
Bloomberg analysts now forecast dollar gains at Monday's open amid risk aversion, with oil prices rising due to supply fears and stocks falling. Kyle Rodda of Capital.com said markets hinge on whether this is a temporary setback or full ceasefire collapse: 'That distinction will determine if risk aversion fades quickly or persists.' Monex highlights the dollar's safe-haven status.
Treasury yields are uncertain amid inflation worries, gold could rally, and crude faces Hormuz disruptions.
