News

Mexican Peso still seen as the most attractive carry currency in the world – Rabobank

In 2023, the Mexican Peso (MXN) gained around 15% against the US Dollar (USD) on a spot return basis. Economists at Rabobank analyze MXN outlook. 

MXN to outperform most of its EM peers

Banxico will start to cut rates this year, and we expect at a more rapid pace than the Fed, but FX is a relative game, and the rest of the LatAm region has already started cutting rates, so MXN remains relatively attractive compared to the rest of the region. When adjusting for volatility and liquidity, we still view MXN as the most attractive carry currency in the world.

Although we see some potential weakness against USD later in the year as Banxico’s rate cuts get underway, we expect MXN to outperform most of its EM peers.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.