However, Mexico’s proximity to the U.S. could once again be an advantage if the Fed announces an interest rate hike Thursday.
“Mexico’s peso is next in line to receive a boost, say Credit Suisse Group AG and Toronto-Dominion Bank, which topped Bloomberg’s rankings for currency predictions in the second quarter. After tumbling to a record versus the dollar last month, the peso may find its feet as the nation’s central bank signals it plans to take policy cues from its U.S. neighbor,” reports Eshe Nelson for Bloomberg.
As an oil exporter, Mexico’s currency has been hit by the falling crude oil prices – ETF investors should keep in mind that while Mexico has a large oil industry, none of the country-specific ETFs include exposure to the sector.
iShares MSCI Mexico Capped ETF
