The Mexican peso weakened past 18.6 per USD, halting its rebound from the one-month low of 18.88 touched on August 4th, after Banxico lowered its overnight rate to 7.75%, trimming some of the carry appeal that had recently underpinned the currency. The move followed a drop in annual inflation from 4.51% in mid-June to 3.51% in July, and slightly stronger economic growth in Q2 compared to Q1, though underlying slack persists. Still, the central bank struck a cautious tone, flagging global trade frictions and geopolitical risks as potential inflationary triggers through peso depreciation or as downside threats to growth. Meanwhile, Washington imposed new tariffs, 25% on steel and 10% on aluminum from Mexico, with duties on auto parts set to follow next week, posing fresh risks to export revenues and industrial output.