“MXN remains one of the EM currencies most vulnerable to renewed stress in EM over the next month once Fed fears resurface,” Berg said.

However, Benito Berber, currency strategist at Nomura, warned that the peso could stabilize around 15.00 to 15.60 after the government’s reofrm program, notably plans to auction 14 oil and gas exploration blocks on July 15 to bolster Mexico’s assets.

Consequently, Mexico ETF investors who believe the peso can depreciate even further should take a look at the currency-hedged ETF options DBMX or HEWW. On the other hand, if the peso begins to strengthen against the U.S. dollar, the non-hedged EWW would outperform.

For more information on Mexico, visit our Mexico category.

Max Chen contributed to this article.