Bullish Peso Bets Jump 35% as Exports Increase: Mexico Credit
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Futures traders are boosting bullish bets on the Mexican peso to an almost three-year high on speculation rising exports will propel gains in the currency.
Wagers on the peso appreciating against the dollar outnumbered bets on a decline by 119,062 contracts, near the most since February 2008, according to the Commodity Futures Trading Commission. Even as yields on Mexican peso bonds climbed 24 basis points this year, investors earned dollar-based returns of 5.3 percent because of the currency’s gain, according to Bank of America Corp. Emerging-market local government debt returned 4.7 percent during the same period.