• Mexican Peso plummets more than 1% as USD/MXN trades above 17.90.
• Fitch reaffirms Mexico's BBB- rating, highlighting judicial reform and fiscal deficit concerns.
• US unemployment claims rise, boosting the US Dollar Index above 104.00, gaining 0.25%.

The Mexican Peso begins Thursday’s session on the backfoot against the Greenback as investors turn risk-averse, while the Greenback remains bid and trims some of Wednesday’s losses. The USD/MXN trades at 17.92, 1.30 % above its opening price.

Mexico’s economic docket remains absent, leaving traders adrift to market mood and US Dollar dynamics. Meanwhile, Fitch ratings reaffirmed Mexico’s BBB- qualification with a stable outlook.

In further comments, Fitch revealed that the proposed judicial reform would negatively affect Mexico’s institutional profile, but it's too early to gauge the impact. The credit rating agency stated there’s uncertainty in the upcoming administration to narrow the fiscal deficit, expects a slight economic slowdown in 2025, and added that trade tensions with the US could leave Mexico vulnerable.

Fitch reviews came after the International Monetary Fund (IMF) adjusted Mexico’s Gross Domestic Product (GDP) expectations for 2024 from 2.4% to 2.2% due to the country’s economic slowdown and the US economic downturn.