Mexican Peso

The Mexican peso is Mexico's money. Its modern code is MXN; the older code MXP belonged to the pre-1993 peso, before Mexico chopped three zeros off. It is one of the most liquid emerging-market currencies and trades around the clock against the US dollar in the pair USD/MXN.

Mexico's economy is stitched tightly to the US through trade, so the peso reacts sharply to tariffs, US growth and oil. It has also been a popular carry trade target, because Mexican interest rates have often been much higher than US ones. When markets panic, though, carry trades unwind fast, and the peso can drop like a stone.