That softer dollar tone, driven by shutdown worries and an increasingly data-constrained Fed, has been the main tailwind for MXN today. Domestically, last week’s 25bp Banxico cut to 7.50% set a cautious easing tone but preserved the real-rate cushion that anchors MXN’s carry appeal. In other words, the carry is narrowing, not collapsing, which still differentiates Mexico versus peers and helps the peso on days when the global dollar is soft. Bottom line: today’s peso strength is mostly a dollar story amplified by Mexico’s still-attractive (if slowly shrinking) real carry and a steady domestic backdrop. Keep an eye on the U.S. funding timeline, Banxico communications after last week’s cut, and the next inflation print for confirmation.”