LatAm FX carry trade shrugs off geopolitical fears
Clients in regional carry positions remain undeterred by US interventions, say dealers
Increased geopolitical instability in Latin America in recent weeks has failed to dissuade investors from putting on foreign exchange carry trades linked to the region’s currencies, according to dealers.
The back half of 2025 saw FX carry trades in emerging markets boom, driven by low volatility and significant interest rate differentials with the US. Despite Donald Trump’s regional sabre-rattling
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