The Mexican peso has faced notable challenges this year, seeing USD/MXN rise 20% since the lows observed in April. This increase is driven by political tensions and trade disruptions impacting both the United States and Mexico. However, Rabobank’s Molly Schwartz presents a more optimistic view, suggesting that recent changes in the tariff structure and Mexico’s alignment with US trade objectives could provide much-needed stability to the peso. As these factors evolve, investors will keep a close eye on the currency’s recovery potential, making it crucial to monitor developments in trade agreements and economic indicators in the coming weeks. The peso’s resilience amidst external shocks poses an interesting question for traders: can tariff reprieves truly buoy the currency?