Currencies
Mexico Peso Packs a Year of Moves Into One Day as Carry Unwinds
- Mexican currency hits lowest level since late 2022 amid rout
- AMLO says Mexico reserves will help currency withstand losses
While the peso lacks positive drivers in the near term, the room for additional losses may be limited.
Photographer: Mauricio Palos/BloombergThis article is for subscribers only.
Mexico’s peso is taking the brunt of an unwinding in carry trade positions in Latin America, slumping to the lowest in almost two years on Monday and leading losses among its regional peers.
The currency dropped as much as 5.4% — more than its annual move in six of the last seven years — before rebounding to trade little changed and then dipping again. For a few minutes it fell below 20 pesos to the dollar for the first time since October 2022.