The Mexican peso experienced volatility in June and July 2025 amid escalating geopolitical tensions and economic data releases. Initially, the peso depreciated against the US dollar for three consecutive days due to rising conflicts between Israel and Iran and concerns over potential US involvement, with the exchange rate reaching 19.0731 pesos per dollar. The Mexican Stock Exchange (BMV) also declined by 1.17% during this period. Following a surprise US attack on Iranian nuclear facilities and subsequent Iranian retaliation, the peso showed slight gains but remained under pressure. A notable recovery occurred after Israel and Iran agreed to a ceasefire, with the peso strengthening to around 18 pesos per dollar and the BMV posting gains. Inflation data released in early July indicated a slowdown in Mexico's consumer inflation rate to 4.32% annually in June, influenced by lower prices in fruits, vegetables, energy, and government-authorized tariffs. On July 16, the peso showed mixed movements, initially appreciating due to a general decline in the dollar following US producer price data, but also experiencing marginal depreciation amid ongoing dollar strength, trading near 18.82 pesos per dollar. Additional economic indicators included a 2.7% annual inflation rise in the US and silver prices reaching a 14-year high. The dollar's exchange rate at Mexico City's airport ranged from 18.34 to 19.12 pesos. Overall, the peso's fluctuations reflected the interplay of geopolitical risks and economic data impacting investor sentiment.