11:53 AM EDT, 06/07/2024 (MT Newswires) -- The Mexican peso fell heavily and underperformed all other G20 currencies in North American trade on Friday as the US dollar surged across the board in response to blockbuster non-farm payrolls report for May.

USD/MXN was quoted 2.55% higher around 18.3292 and had briefly traded up to October 2023 highs around 18.40 after the Bureau of Labor Statistics said non-farm payrolls rose 272,000 in May, confounding estimates for a 185,000 increase.

Fed Funds rate futures slumped with the rate implied by the September contract rising to 5.26% and the level implied by the December contract climbing 10 basis points to 5.04% as an earlier expected interest rate cuts were priced out.

The peso had weakened ahead of the non-farm payrolls report when Instituto Nacional de Estadistica y Geografia data showed inflation rising less than expected in May with core inflation at its weakest since November 2020 in MoM terms.

Previously, the peso came under pressure on Thursday when lower house leader Ignacio Mier reportedly said lawmakers will discuss controversial constitutional reforms when the Congress is seated in September.

Prior to that the peso saw heavy losses on Monday and Tuesday when president-elect Claudia Sheinbaum's Morena party came close to a congressional 'supermajority' in Sunday's election, stoking fears about the prospect of constitutional reforms.