Last week's volatility spike did not hurt emerging market currencies as much, a Bloomberg measure of EMFX carry trades showed.
However, trading wasn't uniform, as the unwinding of JPY funded carry trades dragged the Mexican peso lower. MXN weakness had been present since last week, when the BoJ decided to hike rates for the second time this year
The table below shows a beta FX matrix for EM, sorting for the Japanese yen, we can see high-yielders LatAmFX holding to the highest sensitivity to changes in JPY
Having been a popular carry trade, it isn't surprising that the Mexican peso holds the highest sensitivity to JPY's daily changes
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