• Mexican Peso falls for second consecutive day against US Dollar.
• USD/MXN hits a daily high of 18.33 before trimming gains as Wall Street turns green.
• Banxico expected to keep interest rates unchanged at 11.00% amid sharp Peso depreciation and recent inflation spike.
• Fed Governor Michelle Bowman's hawkish comments support USD.

The Mexican Peso extended its losses for the second consecutive day against the Greenback after the latter rose sharply. This was boosted by the jump in the USD/JPY pair, which exchanges hands at 38-year high as US Treasury bond yields advance as traders brace for the release of crucial inflation data in the United States (US). The USD/MXN trades at 18.23, up 0.73%.

Sentiment shifted positively as Wall Street turned green during the last hour, trimming the USD/MXM pair gains after hitting a daily high of 18.33.  Mexico’s economic docket remains scarce as investors brace for Thursday's Bank of Mexico (Banxico) monetary policy.

Banxico is expected to keep interest rates unchanged at 11.00% after the Mexican currency experienced a sharp depreciation following the June 2 election, alongside the sudden jump in June’s mid-month inflation.

The Citibanamex survey showed that most economists expect rates to be unchanged at 11.00%, yet they expect the central bank to cut rates until August.

Besides that, investors are eyeing President-elect Claudia Sheinbaum’s cabinet members on Thursday.

Meanwhile, the USD/MXN experienced back-to-back positive gains sponsored by Federal Reserve (Fed) officials' hawkish comments, particularly Governor Michelle Bowman. She said that rates will remain steady for “some time” and that if the disinflation process stalls, she’s open to another interest rate hike.