Trump’s LatAm gambit spurs FX hedging rush
Venezuela op boosts risk reversals as investors look to protect carry trades
Demand for Latin American currency hedges is surging, as investors look to protect their carry trades from geopolitical shifts and dealers try to squash tail risks.
Foreign exchange options notional volumes in Brazilian real and Mexican peso have been climbing steadily since mid-December, and reached $8.2 billion and $3.5 billion, respectively, on January 5. That is 57% and 65% higher than their
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