# Peso rally cheapens cost of buying EM currency insurance

> Bank of America Merrill Lynch says the recent peso rally has left implied volatility costs cheap, and recommends buying two-month USD/MXN volatility as a hedge. The bank cites French elections and tighter Federal Reserve policy as risks for emerging market currencies.

- Date: 2017-02-28 · published 2017-02-28T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/72715-peso-rally-cheapens-cost-of-buying-em-currency-insurance
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

This is a currency options recommendation with no direct effect on grain supply or demand, so its relevance to feed prices is minimal.

## Sources

- ft.com: https://www.ft.com/content/d9d0f8e4-fd91-11e6-8d8e-a5e3738f9ae4

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.