FT News Briefing Why the Mexican peso is on a tear
56 snips
Aug 12, 2025 The surprising surge of the Mexican peso is linked to renewed carry trading, countering fears from U.S. tariffs. Insights reveal how evolving U.S.-Mexico relations may reshape economic ties. Additionally, tensions in Taiwan are highlighted, focusing on resistance against pro-China sentiments and the fallout from a failed recall vote. The podcast dives into the complexities of Taiwan's political landscape, revealing struggles for internal unity amidst external pressures from China.
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Europe Seeks Seat At Trump-Putin Talks
- European leaders arranged a call with President Trump before his Putin meeting.
- They want influence to prevent territorial-swap proposals affecting Ukraine.
Carry Trade Fuels Peso Rally
- Investors borrow low-yield currencies and buy pesos to earn higher Mexican yields.
- Christine Murray says this carry trade lifted the peso amid tariff anxieties.
Strong Peso Can Hurt Exports
- A too-strong peso harms Mexico's export industry reliant on US demand.
- Christine Murray warns Mexico's economy is struggling despite currency gains.
