Emerging markets across the world are facing the threat of capital outflows amid the U.S. dollar's rapid rise, but investors remain bullish on one developing nation: Mexico.
"Mexico is a market that we like a lot," Jonathan Brodsky, managing director of Advisory Research, told CNBC on Thursday. "Recently, Mexican stocks have been priced too expensively for us...but given what has happened with outflows and the depreciation of the peso, we're beginning to see a lot more interesting opportunities."
The Mexican peso slumped to all-time record lows at 15.6658 per dollar this week as stellar U.S. employment figures last week stoked expectations that the Federal Reserve would hike rates sooner rather than later, sparking a broad dollar rally. The peso's drastic fall prompted the country's foreign exchange commission to intervene on Wednesday, commencing a $52 million daily dollar auction that will last for three months.