Japanese housewives, who also include the Turkish lira among their investment preferences, have been investing more in a new currency recently. Data indicate that individual Japanese investors prefer the Mexican peso over the dollar.
The Mexican peso is gaining more and more traction in Japan, which appreciates its country’s high interest rates and its currency’s strong performance.
Looking at the positions of individual investors in Japan, it is seen that the Mexican peso has the largest net long position among the 14 currencies traded on the Tokyo Stock Exchange.
Net long positions more than doubled this year to 50.7 billion yen ($360 million). The South African rand is second in net long positions after the Mexican peso.
The Mexican peso has lured Japanese retail investors with extra yields at a time when they are suffering locally from yen and near-zero interest rates due to the harmonious policy of the Bank of Japan.
The Mexican currency has the highest interest rates among 14 currencies after the Turkish lira, but the peso has outstripped the lira by almost 40 percentage points this year.
The Central Bank of Mexico, which raised the policy rate to an all-time high last month, will continue to follow the tightening of the Fed.