EM FX: Mexican Peso holding strong, but for how long?
asked by u/rahul.pillai · 21d · 2 answers
It's been interesting watching the Mexican Peso lately, particularly against the Yen. $MXNJPY is still hovering around the 9.25 mark, even touching 9.26269 earlier today. The carry trade has been a pretty dominant theme for a while now in EM FX, and MXN has certainly been a beneficiary. The rate differential is still significant, making it attractive.
However, I'm starting to wonder about the sustainability of this strength. With the Federal Reserve's stance and the potential for a shift in global risk sentiment, could we see a quicker unwind than anticipated? What are others' thoughts on the potential catalysts that could change the current trajectory for MXN, or for EM currencies in general?