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6 results for “carry-trade

Brazil’s Central Bank’s ‘Married Operations’ Stabilize Real Amid High Selic Rate
CurrenciesAug 11

Brazil’s Central Bank’s ‘Married Operations’ Stabilize Real Amid High Selic Rate

Brazil's Central Bank uses simultaneous spot sales and reverse FX swaps to manage USD/BRL volatility, boosting the carry trade.

Brazilian Real Volatility Spikes as USD/BRL Breaches Central Bank's R$5.10 Model Ahead of Expected Selic Cut
MarketsAug 04

Brazilian Real Volatility Spikes as USD/BRL Breaches Central Bank's R$5.10 Model Ahead of Expected Selic Cut

The USD/BRL touched R$5.1351 on Tuesday, rising past the BCB's internal exchange rate model ahead of the expected 25bp Selic rate cut.

US Tariffs and Middle East Risks Cap BRL Carry-Trade Gains
CurrenciesJul 28

US Tariffs and Middle East Risks Cap BRL Carry-Trade Gains

Brazil's 14.25% Selic rate fuels carry trades, but new 25% US tariffs and Middle East tensions cap the Brazilian real's appreciation potential.

Brazilian Real's Carry Trade Appeal Drives Currency to Seven-Week High
CurrenciesJul 27

Brazilian Real's Carry Trade Appeal Drives Currency to Seven-Week High

The Brazilian Real strengthened to a seven-week high on carry-trade flows, reflecting a structural trend driven by high interest rate differentials.

Brazilian Real Hits Seven-Week High on Resurgent Carry-Trade Demand
CurrenciesJul 27

Brazilian Real Hits Seven-Week High on Resurgent Carry-Trade Demand

Brazil's currency is benefiting from one of the world's highest real interest rates, fueling a carry-trade that pushed USD/BRL to its lowest level since May.

USD/BRL Nears 5.17 as Copom Signals 2028 Inflation Horizon
CurrenciesJun 29

USD/BRL Nears 5.17 as Copom Signals 2028 Inflation Horizon

The Central Bank of Brazil's shift toward a 2028 inflation convergence horizon to justify Selic cuts has narrowed the carry-trade yield differential, weakening the Real.