Your South of the Border Trade
By: Kelley Holland | News Writer
The Mexican peso has been on a tear, and this strategist thinks it still has room to rise.
It's been a great month to be long the Mexican peso, given its six percent rise so far this year. Win Thin, director of emerging markets strategy at Brown Brothers Harriman, thinks the good times could still roll.
Thin told me he thinks others are more optimistic about the U.S. economy than he is - "keeping interest rates at zero through 2014 doesn't exactly make me feel bullish" - and that any weakness in the peso "should be viewed as a buying opportunity for an eventual move below 13.00"
Monetary policy also favors the peso, Thin says, at least relative to Mexico's neighbors. "Mexican officials are much more hands off than Brazil" or Colombia or Peru when their currencies are rising, he told me.
Europe's problems inject risk into the outlook for any emerging market currency, of course. But if you are willing to wade into those waters, Thing believes the peso is your best bet.
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