World’s Best Currency Seen Extending Run as Trump Agenda Falters
- Real effective exchange rate shows excessive peso weakness
- Strategists raise forecasts for the peso as Nafta threat fades
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Don’t let the Mexican currency’s rally this year turn you off. Strategists from Morgan Stanley to BNP Paribas SA say it’s a great bet.
The peso has risen 15 percent this year to trade at 18.0759 per U.S. dollar on Thursday on speculation the U.S. is less likely to pursue a damaging renegotiation of the North American Free Trade Agreement. Wall Street banks, and even Mexico’s central bank Governor Agustin Carstens, insist the currency’s still cheap.