Citigroup tells investors to sell Mexico’s Peso and buy dollars

Bloomberg

Investors should sell Mexico’s peso and buy dollars and euros amid a widening current account deficit in Latin America’s second-largest economy, according to Citigroup Inc.
While Mexico’s peso has tumbled the most among major currencies this year on bets that higher borrowing costs in the U.S. will reduce the appeal of riskier assets, Citigroup says that local economic indicators should also be putting pressure on the currency.
Mexico’s current account deficit has been widening amid sluggish economic growth.
In February, the central bank unveiled a series of coordinated moves to bolster the peso, prompting a drop in the nation’s cash hoard a month and a half before Moody’s Investors Service put a negative outlook on its grade for the country.