Mexican Peso's Ties to Emerging Market Currencies Rise: Chart

Mexico Finance Minister Says Peso Had to Be Saved

The increasing correlation between the Mexican peso and emerging markets reflects how the peso, the most open emerging-markets currency, has become the most liquid way to short developing nations, said Bloomberg FX applications specialist Ralph Cope. The peso is also being used as a proxy hedge for specific currencies such as the Turkish lira and the South African rand. This attracts investors looking to protect themselves against continued currency devaluations.

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