Global Carry Trade Unwind Extends as Peso Drops, Yen Gains
- Funding currencies the yen and yuan surge on short-covering
- Mexican peso retreats as pressure returns on EM currencies
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An unwinding of global carry trades is helping to jolt markets around the world.
The yen and yuan pushed higher Monday, while the Mexican peso extended its decline as traders continued to roll back the popular trading strategy. The peso pared some losses to trade 2.3% weaker to the greenback, the worst performance among currencies tracked by Bloomberg, while the Australian dollar was down 0.7%.