Does Consul service mesh service discovery take into account n/w latency while resolving request

I have setup a consul cluster having a single server and 2 clients(2 different VMs) running Service A registered in the service mesh. On VM1 there is a service Test also registered in the the service mesh that needs to call Service A. When service Test calls the service A, will the service running in VM1 serve the request or will the service A running on VM2 serve it?

Does Consul service discover use the n/w latency consideration such that service requested if available locally gets priority or is there any way to implement in such a way?