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Mexican peso slides as carry trade unwind risks rise into Q4

The Mexican peso is down 6% on the month so far, as Société Générale flags September as a key EM carry-trade unwind period.

Reported · Written up by our desk · EM Currencies

FXStreet cites Société Générale’s Kenneth Broux warning that September has featured a sharp unwind in emerging market carry trades, with the Mexican peso a notable focus.

According to the note, the peso is down 6% on spot so far this month.

The same FXStreet package also points to shifting currency dynamics elsewhere in Asia, including AUD/USD trading near two-month lows around 0.6950 after softer-than-expected Australian underlying CPI data, and USD/JPY holding losses under 157.00 as hawkish Bank of Japan expectations support the yen.

Latest closeUSD/JPY 157.34 ▼0.1%

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