Mexican Peso Rebounds but Still Set for Weekly Loss as Carry Trade Unwinds
The Mexican peso gained about 0.5% against the US dollar, but remains on course for a weekly drop of roughly 3% as investors exit carry trades.
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The Mexican peso recovered some ground against the US dollar, rising 0.50% on the day. Even so, it remains positioned to finish the week with a loss of about 3% as investors unwind carry trades.
The pullback comes amid a narrowing interest rate differential between the United States and Mexico, which has reduced the appeal of holding peso-denominated carry positions.
Source: FXStreet Forex News