Mexican Peso Looks to Regain Its Crown as Carry Trade King
- Analysts are bullish with more rate hikes to come by year-end
- Low volatility, high carry will likely boost peso by year end
Photographer: Hector Vivas/Getty Images
This article is for subscribers only.
Even as some emerging-market peers ramp up interest rates amid resurgent global inflation, Mexico is vying to regain its crown as the king of carry.
While policy makers in Mexico have lagged behind their counterparts in Brazil, Russia and Turkey in raising borrowing costs, the peso remains attractive because of its stability, a major demand of any investor eking out small returns by borrowing in one currency and lending in another.