Reported 11 months ago
The Mexican peso is experiencing its worst week in four years as traders rush to exit positions following the unexpected landslide win of Morena ruling party in congressional races. This outcome raised concerns about potential reforms that could impact the business climate and economy, causing the peso to plummet more than 7.5% in just one week. Market volatility ensued with comments on judicial reform and market jitters, leading to a spike in interest rates, stock index declines, and a rise in default hedging costs, signifying a shift from the peso's previous status as a carry trade favorite.
Source: YAHOO