Bianca
Sun Jun 09 2024
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6 answers
1472
Why is the Mexican peso so strong?｜The key to the peso's strength has been its , which make it attractive to borrow in one currency and lend in pesos, the so-called carry trade.low volatility and Mexico's record-high interest rates
Could you please explain why the Mexican peso has been exhibiting such strength recently? It seems to be attracting a lot of attention. Could you elaborate on the factors contributing to its strength? Is it due to its low volatility, or is it because of Mexico's record-high interest rates? I'm also curious about the carry trade you mentioned, where investors borrow in one currency and lend in pesos. Could you provide more insight into how this works and how it affects the peso's strength? Thank you.
