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MXNJPY catching a bid despite NPL concerns
Seeing $MXNJPY pushing higher today, currently at 9.25538. Pretty interesting given the chatter about rising non-performing loans in Mexico and the general sentiment around LatAm stability. You'd think that kind of news would put more pressure on the peso, but it's holding up against the JPY. Makes me wonder if the market is just shrugging off localized credit risk for now, or if the carry trade appeal is simply too strong to ignore in this environment. Definitely watching how this plays out, especially with $ZARJPY pulling back slightly today at 9.90101. Could be a decent indicator of broader EM FX resilience, or lack thereof, going forward.
1 comments · 1 points
It's a good point about the NPLs. I wonder if it's more about the significant interest rate differential between MXN and JPY right now, making the carry too attractive to ignore, even with some underlying risks.