Mexico Peso Sees Worst Day Versus Yen Since August Carry Blowup
Mexican peso banknotes arranged in Axtla de Terrazas, San Luis Potosi, Mexico, on Sunday, April 2, 2023.
Photographer: Mauricio Palos/BloombergThis article is for subscribers only.
Mexico led declines among emerging-market currencies on Monday amid fears over the path of US trade policy and haven-driven gains for the yen, pushing investors to unwind carry trades funded by the Japanese currency.
The peso saw its biggest intraday plunge against the yen since August, when a carry-trade blowup roiled global markets. The MXN/JPY pair traded 2.9% lower as of 4:30 p.m. New York, with traders cutting risk amid a slump in AI-related stocks after a new chatbot by China’s DeepSeek raised questions over sky-high valuations.