Mexican Peso Reaches 9-year High as Carry Trade Continues Un Dimmed

The Mexican peso slumped the most in four years as conflict in the Middle East sapped demand for the currency. The currency has been one of the favorite targets for carry trades. Rising Mideast risk has also hit the currency that has been a favorite target for carry trade.

The Mexican peso slumped the most in four years as conflict in the Middle East sapped demand for the currency. The peso tumbled more than 6% against the dollar. The currency has been one of the favorite targets for carry trades for the past four years.

Mexican Peso Reaches 9-Year High as Carry Trade Remains Undimmed. Mexico’s peso rose to the highest in almost nine years Wednesday. The peso is driven by a combination of high interest rates, low volatility and ample liquidity, analysts say.