05 April 2010

MEXICO: Peso Gains Outpacing All Currencies.

BLOOMBERG/    Despite seemingly endless reports about bloodshed and drug violence, Mexico's peso is outperforming all other major currencies for the first time since 1998. Speculators believe the peso will rise even more. Bullish bets on the peso outnumbered bearish ones by 109,598 on March 30 and by 109,862 a week before, the most since April 2008. The peso is trading 10.6 percent below its average of 11 per dollar in the past decade even after rallying 26.5 percent from its March 2009 low. Bank of America Merrill Lynch estimates it’s undervalued by 10 percent. “We expect a marathon of slow and steady peso appreciation,"said one expert”