Falling peso not (necessarily) about risk aversion

Financial Times – The Mexican peso is one of the worst performing emerging market currencies this year, even though the country is widely regarded as a rare bright spot in a gloomy emerging world.

An explanation often offered is that the peso is among the first assets to be sold when investors become broadly averse to risk, whatever their views of Mexico itself. But data from Citi suggest this explanation is not enough.

http://www.ft.com/intl/cms/s/3/5bd75bee-308e-11e5-91ac-a5e17d9b4cff.html#axzz3gp63kPP5

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