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Developing-nation currencies continued to decline after Federal Reserve Chairman Jerome Powell stated that there is no rush to cut interest rates due to the strong performance of the US economy. The dollar strengthened in response, causing a drop in the MSCI benchmark for emerging stocks for the fifth consecutive day. The potential for higher global interest rates and a stronger dollar following Donald Trump's election has led to market volatility, with the Fed expected to cut rates next month but maintain a more restrictive stance in the long term. [Extracted from the article]

Developing-nation currencies continued to decline as Federal Reserve Chairman Jerome Powell emphasized the strong performance of the US economy, suggesting no rush for interest-rate cuts. The dollar strengthened in response, causing a dip in the FX gauge for developing countries. The MSCI benchmark for emerging stocks also fell, reflecting concerns about a stronger dollar and potential global interest rate hikes. Uncertainty surrounding US policy direction and the impact of Trump's plans on inflation are contributing to volatility in emerging market currencies. Mexico's central bank cut its benchmark interest rate, while Latin American currencies showed mixed performance against the dollar. [Extracted from the article]

Developing-nation currencies and stocks have fallen for a fifth consecutive day as the US dollar strengthens, leading to losses in emerging-market assets. The Federal Reserve's cautious approach to interest rate cuts, combined with concerns about inflation and global interest rates, has contributed to the decline in risk assets. Uncertainty surrounding US policy direction and the potential impact on inflation have increased volatility in emerging-market currencies. Mexico's central bank has cut its benchmark interest rate, while the Bloomberg Dollar spot index has risen this week. [Extracted from the article]

Developing-nation stocks experienced a fifth consecutive day of losses due to concerns about a stronger dollar and potential global interest rate hikes under a second Trump administration. The MSCI benchmark for emerging stocks fell by 0.9%, with a 4.5% loss expected for the week. The Federal Reserve's future interest rate decisions and Trump's economic policies are key factors influencing market volatility and currency fluctuations in emerging markets. The Bloomberg Dollar spot index rose by 1.3% this week, impacting various currencies differently, with Latin American currencies rebounding against the dollar. Mexico's central bank is anticipated to lower its benchmark interest rate to 10.25% amidst economic uncertainties. [Extracted from the article]

Pimco, a major emerging-market investor, is questioning the effectiveness of floating exchange rate regimes due to recent currency volatility in developing countries. The head of Pimco's EM team, Pramol Dhawan, highlighted the challenges posed by high currency swings in countries like Mexico and Brazil, while noting the appeal of controlled FX policies in nations like Egypt and Nigeria. Economists and policymakers have debated the best exchange rate policy for developing nations, with some advocating for more flexible regimes to withstand external shocks and attract foreign investment. Despite the benefits of exchange rate flexibility, investors like Dhawan are deterred by the increased volatility, leading them to seek out more stable currencies like Peru's sol. [Extracted from the article]

Developing-nation currencies and stocks experienced a decline for the fourth consecutive day as investors shifted their focus to President-elect Donald Trump's cabinet picks and potential policies, rather than US consumer price data. The market reacted to the possibility of worsening ties between the US and China due to Trump's cabinet selections, with concerns about higher tariffs and inflation. The strength of the US dollar has negatively impacted emerging markets, with some currencies like the South African rand and Brazilian real performing poorly, while others like the Thai baht and Chilean peso gained. China successfully raised $2 billion from securities, indicating strong investor interest. [Extracted from the article]

El Salvador is making its third offer to buy back dollar bonds this year, with a combined principal amount outstanding of over $2.5 billion. President Nayib Bukele is leveraging Bitcoin's rally and the US election results to boost the country's economy. The debt buyback is contingent on new financing, as El Salvador's debt has seen a 4.7% return since Donald Trump's re-election, with hopes of securing a loan from the International Monetary Fund. The IMF has expressed concerns about El Salvador's use of Bitcoin as legal tender, but the country's recent debt buybacks have been used to fund conservation efforts and manage its financial obligations. [Extracted from the article]

The article discusses the increasing interest in junk-rated dollar debt from developing nations by money managers at UBS Asset Management, Lazard Asset Management Ltd., and PGIM Fixed Income following Donald Trump's election. The improved fundamentals in some emerging nations are seen as a factor that could insulate these credits from potential selloffs in global rates and currency volatility. Investors are closely monitoring global interest rates and the impact of Trump's policies on emerging markets, with a focus on high-yield sovereign and corporate debt as attractive investment opportunities. [Extracted from the article]

The article discusses the increasing interest in junk-rated dollar debt from developing nations by money managers at UBS Asset Management, Lazard Asset Management Ltd., and PGIM Fixed Income following Donald Trump's election. The improved fundamentals in some emerging nations, such as growing foreign reserves and structural economic reforms, are seen as factors that could insulate these credits from potential selloffs in global rates. Despite concerns about Trump's tariff stance, high-yield notes from countries like Argentina, Sri Lanka, and Pakistan have delivered significant gains this year, making them attractive investment opportunities. The article also highlights the appeal of high-yield corporate bonds in the current market environment, with some investors favoring specific sectors like China's real estate or Latin America's high-growth companies. [Extracted from the article]

The article discusses the impact of the US presidential election on emerging markets, with traders bracing for potential volatility and economic shifts. Investors are adjusting their positions based on the potential outcomes of the election, with a focus on how policies from candidates like Donald Trump and Kamala Harris could affect global trade and market stability. The article highlights the reactions of various currencies, bonds, and equities in response to the election uncertainty, emphasizing the high stakes involved for emerging markets. [Extracted from the article]

The article discusses the impact of the US presidential election on emerging markets, highlighting the potential consequences of a victory by either Donald Trump or Vice President Kamala Harris. Traders are closely monitoring currency movements, bond markets, and equities in countries like Mexico, China, and Poland, as they prepare for potential shifts in global trade policies. The outcome of the election could have significant implications for emerging markets, with different scenarios expected to affect various regions differently. [Extracted from the article]

The article discusses the impact of the US presidential election on emerging markets, highlighting the potential consequences of a victory by either Donald Trump or Vice President Kamala Harris. Investors are closely monitoring currency movements, bond markets, and equities in countries like Mexico, China, and Ukraine, as they prepare for potential shifts in trade policies and economic outlooks. The outcome of the election could have significant implications for emerging markets, with different scenarios expected to affect various regions differently. [Extracted from the article]

Pimco, a major asset manager, warns that investors are focusing too much on risky bonds in emerging markets. They suggest prioritizing bonds from lower-risk countries with reasonable valuations for diversification benefits. The shift comes as global economic growth in emerging markets slows, prompting a more cautious approach to evaluating assets. Some investors are already heeding this advice ahead of the US election, with a focus on minimizing losses rather than maximizing gains in the market. [Extracted from the article]

Moody's Ratings upgraded Suriname's credit rating to Caa1 from Caa3, citing the anticipated economic benefits from major offshore oil projects. The firm expects high growth rates and significant government revenue from the oil production. Suriname's government debt has decreased due to fiscal and economic reforms, leading to a positive outlook. S&P Global Ratings rates the country at CCC+ with a stable outlook. [Extracted from the article]

Bolivia's dollar bonds have seen a significant increase in value due to positive assessments by KNG Securities and legal challenges faced by former president Evo Morales, reducing the likelihood of his return to power. Analysts suggest that any potential restructuring of the bonds would likely focus on deferring payments rather than reducing coupon rates or principal amounts. The country's economic challenges, including dollar shortages and declining foreign reserves, have led to credit rating downgrades and ongoing political tensions between Morales and current president Luis Arce. [Extracted from the article]

Bolivia's dollar bonds have seen a significant increase in value due to positive assessments by KNG Securities and legal challenges faced by former president Evo Morales, reducing the likelihood of his return to power. The bonds have rallied this month, with analysts suggesting that any restructuring would likely focus on deferring payments rather than reducing coupon rates or principal amounts. The nation's economic imbalances, political infighting within the Socialist Party, and ongoing protests add to the uncertainty surrounding Bolivia's future financial stability. [Extracted from the article]

JPMorgan Chase & Co. has provided Panama with a $1 billion loan to assist with liquidity needs for its 2024 budget. The three-year loan carries an interest rate of 150 basis points over the six-month secured overnight financing rate, with the ability to be adjusted under certain conditions. This move is part of Panama's efforts to reassure investors of its commitment to fiscal and economic growth targets, following a credit rating downgrade by Fitch Ratings earlier in the year. The loan is seen as a strategic measure to avoid locking in high market rates for long periods and to borrow at lower yields once market confidence is reestablished. [Extracted from the article]

Bolivia's dollar bonds have seen a significant increase in value due to positive assessments by KNG Securities and legal challenges faced by former president Evo Morales, reducing the likelihood of his return to power. Analysts believe any potential bond restructuring would likely focus on deferring payments rather than reducing coupon rates or principal amounts. The country's economic challenges, including dollar shortages and declining foreign reserves, have led to credit rating downgrades and ongoing political tensions between Morales and current president Luis Arce. Despite recent gains, experts caution that Bolivia's financial stability remains precarious. [Extracted from the article]

Sustainable investments in emerging markets are struggling due to capital outflows and the appeal of higher-yielding energy bonds. Emerging markets have experienced consecutive outflows for the past three years, largely due to global monetary policies. Bonds from companies with tarnished ESG reputations, such as Vedanta Resources Ltd. and Braskem SA, have provided higher returns compared to ESG-focused strategies. The sale of green bonds in developing nations has also contracted. Investors are finding it difficult to navigate different regulatory frameworks and the European Union's crackdown on the use of the ESG label is deterring investors. However, money managers emphasize the importance of including emerging market issuers in sustainable finance initiatives. [Extracted from the article]

Colombia's state oil company, Ecopetrol SA, has launched a $1.75 billion bond deal on international debt markets to fund a buyback of existing bonds and prepay loans. The new debt is expected to yield around 7.65% and has been rated BB+ by Fitch Ratings. This move comes as Ecopetrol invests in offshore exploration and the country faces a natural gas shortfall. The buyback offer expires on October 15th, and the deal is being managed by BBVA Securities Inc., JPMorgan Securities, and Santander US Capital Markets. [Extracted from the article]

Colombia's state oil company, Ecopetrol SA, is planning to raise up to $2 billion through the sale of dollar notes in order to buy back existing bonds and prepay loans. The new debt is expected to yield around 8% and will mature in approximately seven years. Ecopetrol's decision to return to the bond market comes as the company invests in offshore exploration and the country faces a natural gas shortfall. The buyback offer will expire on October 15th, and the deal is being managed by BBVA Securities Inc., JPMorgan Securities, and Santander US Capital Markets. [Extracted from the article]

Suriname is preparing to sell the first-ever United Nations-verified sovereign carbon credits, aiming to raise $45 million by cashing in on its jungle-covered territory. The government's plan is to have companies pay for the carbon absorbed by Suriname's forests, providing an incentive for the country to preserve its natural resources. While some critics question how this approach helps achieve the targets set under the Paris Agreement, there are already potential buyers for the credits, and other emerging markets like Honduras, Belize, and Papua New Guinea are considering similar deals. [Extracted from the article]

Ecuador is facing its worst drought in over six decades, resulting in forest fires, blackouts, and the president, Daniel Noboa, cutting short his visit to New York. This crisis has caused concern among bond investors, leading to a decline in Ecuadorian debt performance. There is a fear that the blackouts and the handling of the situation may impact Noboa's popularity and chances of re-election. Despite this, Noboa still maintains a higher approval rating than his rivals, and the country is expected to receive approval for the first IMF review in November. However, short-term politics will play a significant role in the outcome. [Extracted from the article]

Emerging-market stocks and currencies had a strong week, with the MSCI index for emerging stocks closing 1% higher and the index for developing currencies gaining 0.2%. China's stimulus measures and expectations of further rate cuts by the Federal Reserve supported riskier assets. The recent stimulus measures in China have boosted risk sentiment for emerging markets, and the Federal Reserve's larger-than-anticipated interest rate cut has also contributed to the positive market performance. Asian currencies, such as the Taiwanese dollar and South Korean won, led the gains, while Mexico's peso underperformed. In credit markets, Sri Lanka bonds outperformed peers, while Senegal's sovereign dollar bonds tumbled after a probe into the previous administration's handling of the country's finances. Moody's Ratings also cut Israel's credit rating due to intensified geopolitical risk. [Extracted from the article]

Emerging-market stocks and currencies have continued to gain momentum due to signs of a cooling US economy and China's ongoing stimulus measures. The MSCI index for emerging stocks has seen its biggest rally since November 2020, with a 6.4% increase for the week. The Federal Reserve's preferred gauge of US inflation rose moderately in August, while China's stimulus measures have boosted risk sentiment for emerging markets. This combination of factors has attracted investors' attention to China's equity market and led to gains in currencies such as Chile's peso, the South Korean won, and the Malaysian ringgit. However, there have been some challenges in the credit market, with Sri Lanka's bonds outperforming peers and Senegal's sovereign dollar bonds experiencing a decline due to a government probe into the previous administration's handling of the country's finances. [Extracted from the article]

Emerging-market stocks and currencies have continued to rise due to signs of a cooling US economy and China's ongoing stimulus measures. The MSCI index for emerging stocks has gained 1.2% this week, the largest increase since November 2020. The core personal consumption expenditures price index in the US rose by 0.1% in August, the smallest increase in three months, which further supports the expectation of rate cuts by the Federal Reserve. China's stimulus measures, including rate reductions and support for equity markets, have also boosted investor confidence. In the currency market, Chile's peso and Asian currencies have seen gains, while Sri Lanka bonds have outperformed peers. However, Senegal's sovereign dollar bonds have experienced a decline after the government announced an investigation into the previous administration's handling of the country's finances. [Extracted from the article]

Emerging-market stocks experienced their best day in almost a year, driven by new stimulus commitments from the Chinese government and positive economic data from the US. The rally was sparked by China's leaders announcing plans for increased fiscal spending, measures to stabilize the property sector, and rate cuts. Additionally, the US economy showed stronger-than-expected recovery from the pandemic, and jobless claims indicated a resilient labor market. Emerging currencies mostly gained, with the Chilean peso leading the way, while the Mexican peso briefly extended gains after the central bank lowered borrowing costs. El Salvador sovereign bonds performed well, while Ecuador's dollar bonds suffered due to ongoing forest fires and power cuts. Sri Lanka dollar bonds also saw gains as the new president expressed intentions to establish stability before implementing other initiatives. In the Middle East, the shekel and Israeli stocks rose amid diplomatic efforts for a potential truce between Israel and Hezbollah in Lebanon. [Extracted from the article]

Latin American currencies weakened on Wednesday due to a stronger dollar and diminishing optimism about China's stimulus measures. The Mexican and Colombian pesos were particularly affected, dragging down the overall performance of emerging-market currencies. China's recent interest rate cut failed to sustain the rally in commodity prices that had boosted the region's currencies the previous day. The Mexican peso also faced pressure due to US election risks and increased political uncertainty at home. [Extracted from the article]

Emerging-market stocks reached a two-month high due to positive US data on business activity and expectations of further stimulus measures in China. The MSCI index for developing-nation stocks rose, indicating confidence in the US economy's ability to avoid a hard landing. The People's Bank of China's decision to cut the 14-day reverse repurchase rate also fueled speculation of additional measures to boost growth. However, most emerging-market currencies fell against the dollar, limiting demand for risk-sensitive currencies. Brazil's real underperformed due to concerns about the government's spending freeze, while Sri Lanka's dollar notes declined following a leftist candidate's presidential election win. [Extracted from the article]

Emerging-market stocks reached a two-month high due to positive US data on business activity and expectations of further stimulus measures in China. The MSCI index for developing-nation stocks rose for a third consecutive day, indicating confidence in the US economy's ability to avoid a severe downturn. The People's Bank of China's decision to cut the 14-day reverse repurchase rate also fueled speculation of additional measures to boost growth. However, most emerging-market currencies weakened against the dollar, and Brazil's real underperformed due to concerns about the government's spending freeze. In bond markets, Sri Lanka's dollar notes declined following the election victory of leftist candidate Anura Kumara Dissanayake, raising doubts about the country's debt deals and IMF bailout. [Extracted from the article]

Sri Lanka and its international bondholders have agreed to keep New York as the governing law for new bonds issued under a $12.6 billion debt restructuring, but have introduced a mechanism that allows creditors to request a change to English or Delaware law. This change was triggered by the proposed Sovereign Debt Stability Act in New York, which would limit investors' recoveries after a debt restructuring. The change in governing law would require a three-step mechanism, and it would be the first time that creditors can initiate a request to change the governing law in sovereign bonds. [Extracted from the article]

El Salvador's sovereign debt has increased after President Nayib Bukele announced that the 2025 budget would not involve issuing new debt, indicating a commitment to fiscal austerity. This move is seen as a crucial step towards unlocking a program with the International Monetary Fund (IMF). The announcement comes after concerns about the government's ability to meet debt payments and the delay in reaching a deal with the IMF due to a lack of fiscal consolidation and the country's adoption of Bitcoin as an official currency. While there is optimism about a potential agreement with the IMF, some investors remain cautious and are waiting for more evidence of fiscal deficit reduction and resolution of the Bitcoin issue. [Extracted from the article]

El Salvador's sovereign debt has increased after President Nayib Bukele announced that the 2025 budget would not include any debt. This move could potentially lead to a program with the International Monetary Fund (IMF). The announcement comes after concerns about the government's ability to meet payments and the delay in reaching a deal with the IMF due to a lack of fiscal consolidation and the country's adoption of Bitcoin as an official currency. While there is optimism about a potential deal with the IMF, some investors are still waiting for more evidence of how the government will reduce the fiscal deficit and are concerned about the issue of Bitcoin as legal tender. [Extracted from the article]

Emerging markets are at risk due to their increasing reliance on mutual funds and exchange-traded funds, according to a report by the Bank for International Settlements (BIS). The report states that these funds are more sensitive to the US dollar than other investors, and a stronger dollar can reduce foreign investment in local currency assets. While developing countries have reduced their reliance on loans in other currencies and attracted foreign investors, they are now more vulnerable to dollar strength. The BIS suggests that these countries should broaden their investor base to avoid overreliance on mutual funds. [Extracted from the article]

Assets in developing countries experienced a decline due to soft US labor data and concerns about the Chinese economy, leading to a decrease in investors' risk appetite. The MSCI gauge for emerging-market stocks dropped to its lowest level since August, with Asian tech shares contributing to the decline. The US dollar rebounded, causing the currency index to fall. Traders are closely monitoring US data and comments from the Federal Reserve Governor for clues about potential rate cuts. The Brazilian real and Mexican peso, however, saw gains as traders reevaluated the risk of a sudden US economic slowdown. China's core inflation also cooled in August, raising concerns about deflation and global growth. Sri Lanka's dollar bonds sold off due to rising political uncertainties, while Turkey received a credit rating upgrade from Fitch Ratings. In Chile, the government plans to reduce the fiscal deficit next year despite pressure to address crime and fund social programs. [Extracted from the article]

Emerging markets are facing pressure due to soft US labor data and deflation risks in China, which are dampening investor appetite for risk. The MSCI gauge for developing world stocks fell to its lowest level since August, with Asian tech shares leading the decline. China's core inflation also cooled in August, raising concerns about deflation in the country and global growth. Most emerging market currencies weakened against the US dollar, with Colombia's peso hitting its weakest level since October 2023. However, Mexico's peso was an outlier, gaining 0.5% as traders reassessed the risks of a sudden slowdown in the US economy. Sri Lanka's dollar bonds sold off due to rising political uncertainties before upcoming elections, while Turkey received a second credit rating upgrade from Fitch Ratings. [Extracted from the article]

Latin American borrowers are taking advantage of favorable market conditions to issue hard-currency debt, making it the busiest day for bond sales in the region this year. The Uruguayan government, Petroleo Brasileiro SA, BBVA Mexico SA, and Banco de Credito Del Peru are among the entities selling dollar notes. This surge in bond sales is part of a broader trend as bankers return from the Labor Day holiday and investors await US economic data. The borrowing costs for emerging markets have been decreasing, and other companies, such as Corp Andina de Fomento and Sociedad Quimica y Minera de Chile, are also planning to issue new notes. [Extracted from the article]

Top-performing emerging-market bond managers are adjusting their positions in response to an anticipated interest rate cut in the US. Investors are focusing on local-currency debt and select reform stories in countries like Ecuador and Argentina, which are expected to benefit from the rate cut. Despite recent volatility in emerging markets, funds from Pimco, GMO, and Neuberger Berman have outperformed their peers by returning over 16% in the past year. The expectation is that lower US rates will attract more money into emerging markets, potentially triggering a domino effect of capital inflows. [Extracted from the article]

Top-performing emerging-market bond managers are adjusting their positions in anticipation of a significant interest rate cut in the US. Investors are focusing on local-currency debt and select reform stories in countries like Ecuador and Argentina, which are expected to benefit from the Federal Reserve's rate cuts. Despite volatility in emerging markets, funds from Pimco, GMO, and Neuberger have outperformed their peers, returning over 16% in the past year. The expectation is that lower US rates will attract more money into emerging markets, potentially triggering a domino effect of capital inflows. [Extracted from the article]

According to Pacific Investment Management Co., local currency debt from emerging markets will offer the best returns for investors once the Federal Reserve begins lowering interest rates. This is because emerging-market policymakers have been cautious about easing cycles while US rates remained high. However, with the Fed expected to cut borrowing costs next month, investors will seek alternative sources of returns. The asset class has already seen an increase in performance, with emerging-market local currency debt delivering over 2.3% returns in August, the best month this year. Pimco's head of emerging-market debt, Pramol Dhawan, recommends investing in long-term rates in Latin America, as well as currencies and local bonds in countries like South Africa and Turkey. [Extracted from the article]

According to Pacific Investment Management Co., local currency debt from emerging markets will offer the best returns for investors once the Federal Reserve begins lowering interest rates. This is because emerging-market policymakers have been cautious about easing cycles while US rates remained high. However, with the Fed expected to cut borrowing costs next month, investors will seek alternative sources of returns. The asset class has already seen an increase in performance, with emerging-market local currency debt delivering over 2.3% returns in August. Pimco's head of emerging-market debt, Pramol Dhawan, recommends Latin America, South Africa, and Turkey as potential investment opportunities. [Extracted from the article]

Latin America's local-currency bonds are experiencing their strongest monthly growth this year as the Federal Reserve moves closer to cutting interest rates for the first time since the pandemic began. This easing is expected to alleviate concerns about a potential US recession that would impact the region, and make it easier for Latin American central banks to loosen monetary policy without causing capital outflows to the US. The shift in sentiment has led to increased bond prices in countries like Mexico, Chile, and Peru. The gains in Latin American local currency bonds have outperformed their Asian and African counterparts, and countries like Colombia, Peru, Brazil, and Mexico have seen their government debt perform well. [Extracted from the article]

Peruvian zinc miner Volcan Cia Minera, which was recently acquired by Argentine group Integra Capital, has announced that 81% of its existing 2026 bonds have been tendered for exchange with ones maturing four years later. The company received $294.7 million of notes from bondholders for the newly issued 2030 bonds. Volcan is now amending the offer to encourage more tenders before the final expiration date of September 6. Shareholders approved the proposal to extend the maturity of the bonds in late July, and the company is obligated to exchange the debt if more than 90% is tendered. [Extracted from the article]

Mexico's peso is experiencing a significant decline, causing disruption for traders who were previously bullish on the currency. Factors such as local politics, the dismantling of carry trades, and concerns about the US economic and political outlook have contributed to the peso's decline. Citigroup, Goldman Sachs, and Barclays have all closed or adjusted their positions on the peso due to these concerns. The peso's decline is a stark reversal from its previous status as the best-performing emerging-market currency. The ruling Morena party's victory in legislative elections and proposed reforms by President Andres Manuel Lopez Obrador have also contributed to investor uncertainty. These concerns have also affected Mexico's stock market, with Morgan Stanley downgrading local equities and Bank of America maintaining a defensive stance. The upcoming change in congress and the possibility of a slowdown in the US economy further add to the uncertainty. However, President-elect Claudia Sheinbaum has reassured investors that the judicial reform should not be a cause for concern. The peso's decline has also affected other currencies in Latin America, leading to increased volatility in the region. Bank of America strategists have advised clients to avoid exposure to Latin America and instead favor trades with weak correlation to global risk. Overall, the current situation suggests that the days of a stronger Mexican peso may be behind us, according to Brad Bechtel, global head of FX at Jefferies Financial Group Inc. [Extracted from the article]

Mexico's peso is experiencing a significant decline, causing disruption for traders who were previously bullish on the currency. The peso has fallen almost 4% against the dollar this week and over 14% in the past three months, making it the worst-performing currency among its peers. Concerns about the US economic and political outlook, local politics, and the dismantling of carry trades have contributed to this decline. The peso's recent weakness is a stark reversal from its previous status as the best-performing emerging-market currency. The ruling Morena party's victory in legislative elections in June raised concerns among investors about potential anti-market reforms, including an overhaul of the judicial system. The new political landscape, along with fears of a potential slowdown in the US and the upcoming presidential elections, has added to the uncertainty surrounding the peso. The decline in the peso has also affected Mexico's stock market, with Morgan Stanley downgrading local equities to underweight. Other currencies in Latin America have also experienced increased volatility as traders unwind carry trades. Bank of America strategists have advised clients to avoid exposure to Latin America and instead favor trades with weak correlation to global risk. [Extracted from the article]