Forex markets rattled as Mexico election upends carry trades
As Mexico's currency plunges post-election, global forex markets shudder, casting doubts on the future of popular carry trades. The sudden drop triggers waves from Hungary to Turkey, raising concerns about volatility's grip. With India's rupee stumbling and the yen rallying, investors weigh risks and opportunities. Amidst uncertainty, eyes are on Mexico's new leadership and the U.S. dollar's trajectory. Will carry trades weather the storm, or is it time for a strategic retreat?
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By Harry Robertson
A sharp drop in Mexico's currency after a landslide election result has shaken foreign exchange markets as far as Hungary and Turkey this week, leaving investors asking whether the unwinding of hugely popular "carry trades" will continue.
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