With an aggressive 50bp hike in the COPOM rate, the Brazilian Central Bank (BCB) may have put the brakes on the runaway train that was the Brazil Reel (BRL) this week.
Traders looking for a way to profit from the latest battles in the currency wars have been intrigued by the prospect of earning double-digit dividends from ETFs that invest in foreign currency. But how real are these yields?
Nobody expects inflation to spiral out of control in Brazil over the next few years, but the controversy is exactly how mild price pressures are going to get.
Central bankers in Brazil reduced the cost of borrowing in reais by 50 basis points today, their fourth rate cut in a row in order to stimulate the local economy and ensure that Europe’s currency crisis does not spread to Latin America.
The three incoming members of the Federal Reserve Open Market Committee are much stronger advocates of monetary measures to stimulate the US economy, almost ensuring that a third round of quantitative easing is on the way. If so, look for the US dollar to go on the defensive.
Resource-rich Brazil was supposed to be the hot consumer story for the new century, but its stocks have languished. Will Landers of BlackRock gave us his take on the best bets on the Bovespa.
Since climbing off their post-recession low on Tuesday, stocks in the emerging world are coming back strong. The question is whether this is an organic rally or an artificial effect of central bank action.