BUENOS AIRES, June 8 (Reuters) - An expected fall in Mexico's peso will likely be cushioned by its favorable interest rate spread, although there is a wide range of views on the currency's prospects over the coming year, a Reuters poll of foreign exchange strategists showed.
It was also the best projection for the 12-month period in the survey's recent history, reflecting positive sentiment towards the big margin between Mexico's benchmark rate, currently at 11.25%, and the U.S fed funds rate range of 5.00%-5.25%.
"This is particularly stark for MXN, whose volatility is the most subdued despite its arguably greater sensitivity to U.S.-driven risk-off shocks."
In Brazil, the real , is set to fall 4.5% in one year to 5.14 per U.S. dollar from 4.91 this week.
The real is up 7.7%, confounding detractors who saw it crashing early on in President Luiz Inacio Lula da Silva's government.
Persons:
Optimists, Luiz Inacio Lula da Silva's, Gabriel Burin, Anitta Sunil, Aditi Verma, Jonathan Cable, Ross Finley, Sharon Singleton
Organizations:
Thomson
Locations:
BUENOS AIRES, Mexico's, U.S, Brazil, Buenos Aires, Bengaluru