SEK/MXN settles below 1-week high, posts weekly gain

The SEK/MXN currency pair settled below recent high of 2.0055, its strongest level since June 17th, in the wake of the Mexican central bank’s policy decision.

Banco de México cut its key policy rate by 50 basis points to 8% at its June meeting, with annual inflation rising to 4.51% by mid-June and the local economy growing moderately in April.

The central bank indicated that it could continue with similar 50 bps reductions, as the disinflation process is expected to allow some further monetary easing.

Still, Banco de México said it would proceed with caution amid elevated global uncertainty, ranging from trade tensions to geopolitical conflicts, which could either reignite inflation through Peso depreciation or lead to deeper economic slowdown.

In the meantime, Sweden’s trade surplus has narrowed to SEK 3.9 billion in May from SEK 10.6 billion in the same month of 2024. It has been the smallest surplus since December 2024, data by Statistics Sweden showed.

Total exports shrank 9.6% year-on-year to a five-month low of SEK 169.6 billion.