Mexico's peso hits a nine-year high—what's next for the currency?

4/3The Mexican peso rose to its highest level against the dollar in years9to 16.60 pesos per dollar.3/21Banco de México(hereinafter the central bank of Mexico)announced a rate cut for the first time in five years,5but following the governor's remarks that continued rate cuts would be unlikely, there was growing sentiment that carry trades buying the peso, attracted by its high yields, would continue. It also considered the future direction of the USD/MXN exchange rate.