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Peso Is Best Carry-Trade Currency on Exports: Argentina Credit

Argentina’s peso is becoming the most attractive carry-trade currency in the world.

The peso’s so-called Sharpe ratio, a gauge that measures the reward for the risk investors take, tripled to 10.1 over the past month through yesterday, the highest among 35 currencies tracked by Bloomberg. The peso also posted the biggest drop in volatility among emerging currencies this year, making it more appealing to investors who buy higher-yielding currencies with funds borrowed in countries with lower interest rates.