''Investors who borrowed funds in Japan and then bought the peso to take advantage of Mexican interest rates that are about 40 times higher have lost 11 percent in the past month as the Latin American currency sank. That’s a reversal from the 20 percent return in the first four months of 2013, the biggest in emerging markets and the most among currencies tracked by Bloomberg after the Icelandic krona''.
''Three weeks after Fed Chairman Ben S. Bernanke spurred a global rout by saying policy makers could reduce quantitative easing and the Central bank of Japan decision to leave its lending program unchanged signaled it was reluctant to add more stimulus,the peso has retreated 12 percent against the yen in the past month''.
''Three weeks after Fed Chairman Ben S. Bernanke spurred a global rout by saying policy makers could reduce quantitative easing and the Central bank of Japan decision to leave its lending program unchanged signaled it was reluctant to add more stimulus,the peso has retreated 12 percent against the yen in the past month''.
''At $1.4 billion, sales of peso Mexican bonds sold to individual investors in Japan, known as uridashi, this year have already doubled the total in 2012'', according to data compiled by Bloomberg. Holdings by Japanese mutual funds, known as toshins, of Mexican assets rose to a record high 364.4 billion yen ($3.86 billion) in May from 93.5 billion yen last August, according to Nomura Holdings Inc.“In terms of May, Mexico was still a very popular investment decision for Japan in toshin or uridashi market,” “That will not change so much in the near future.”
Source: Bloomberg, Nomura Holdings Inc.
