The obvious question is why the Mexican peso has been hurt more severely.4  Several factors could be behind peso underperformance, in particular, three possibly interrelated causes. One is rather mechanical and refers to the fact that the Mexican peso is a highly liquid currency in international markets.
This characteristic leads investors to see the peso as an attractive vehicle for hedging against an ample set of risks. A second, deeper reason may stem from concerns over the results of the imminent U.S. presidential election and its possible impact on its southern neighbor.