A losing streak

Foreign exchange

Mexico was sent reeling by a massive plunge in the value of the peso in early October. With foreign investors taking fright at the possibility of a severe global recession and opting to flee emerging markets, the peso tanked by close to 20% in the first eight days of the month. The shift left corporate hedging strategies in tatters, with some Mexican companies reporting hundreds of millions of dollars in mark-to-market losses on forex derivatives positions.

As details have emerged, suspicions