Mexican Peso Is So Strong Investors Fear Betting Against It

  • Best-performing major currency this year seen strengthening
  • Peso’s real effective exchange rate is world’s highest, by far
Mexican peso notes Photographer: Marvin Samuel Tolentino Pineda
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Investors are pushing the world’s most expensive currency to ever more dizzying heights, shrugging off the risks from interest-rate cuts, divisive elections and analyst warnings.

Mexico’s peso is the world’s best-performing major currency this year and the highest ranked on a list of real effective exchange rates — a measure of a nation’s competitiveness — compiled by the Bloomberg. According to Deutsche Bank, that rate is now at its highest in Mexico since at least 2005.