Mexican Peso Reaches 9-Year High as Carry Trade Remains Undimmed
- Banxico’s hawkish cut triggered the latest rally in the peso
- BOJ’s dovish stance favors high yield Latin America currencies
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Mexico’s peso rose to the highest in almost nine years Wednesday, driven by a combination of high interest rates, low volatility and ample liquidity.
The currency is up for the third straight session and has outperformed the MSCI index of emerging market currencies every day since the central bank cut its key interest rate on the afternoon of March 21.