The worry list for emerging market investors at the moment is short.
"The general mood music in DC was positive thanks to robust and synchronized global growth," wrote analysts at HSBC. Yet, there is one "party pooper": Mexico. The peso is, by some distance, the worst performer in the asset class at the moment. It has declined 7 per cent against the dollar over the past month, beyond the 6 per cent drop in the diplomatically-challenged Turkish lira and beyond the politically troubled South African rand, at 2 per cent.
The problem, of course, is the fraught nature of talks over the Nafta trade pact, which underpins the country’s economy. It could get messy. Even then, the damage is likely to be limited, and it is worth bearing in mind that the year began with the dollar north of MXN21. “At 19, Mexico can absorb an awful lot of Nafta bad news,” says Mr McNamara.
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