MUFG: Mexican Peso carry appeal faces crowding risk

FXStreet·25 Aug 2026·

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Summary · why it matters

MUFG analysts Derek Halpenny and Abdul-Ahad Lockhart say the Mexican Peso continues to benefit from low FX volatility and strong carry demand, with USD/MXN breaking below 17.00 for the first time since June 2024. They warn that the peso's carry appeal faces crowding risk.

US Dollar/Mexican Peso FX Spot Rate ±

Impact on assets 1

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💱US Dollar/Mexican Peso FX Spot Rate

USDMXN

± MixedMonetaryrelevance

MUFG notes peso's carry appeal faces crowding risk, implying potential for MXN weakness or volatility, but no clear directional signal for either currency.

MUFG: Mexican Peso carry appeal faces crowding risk

Impact on assets 1

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