Before going into detail on the USDMXN, I wanted to take advantage of this end-of-half period to take a quick look at the main performers since the start of the year.
Let's start with the big losers: unsurprisingly, we find the Russian rouble, the Turkish lira and the yen. Less well known, but just as extraordinary, is the Argentine peso, which has lost over 40% against the euro and the dollar. At the other end of the spectrum, other South American currencies are also doing well, including the Mexican peso (MXN), the Brazilian real (BRL) and the Hungarian forint (HUF).
Does this ranking surprise you? On closer inspection, our podium is dominated by currencies offering the best overnight returns. Clearly, these are the currencies favored by traders as part of their carry strategies, as shown in the table below. Beware, however, of jumping into the lion's den without thinking things through. Initiating a position solely on the basis of the interest-rate differential can prove particularly risky for your portfolio. At the back of the pack are the TRY and RUB, whose rates are nonetheless particularly attractive.