PYG: Still Competitive, Still Attractive

Despite the Paraguayan guaraní's phenomenal run - the currency has appreciated by some 36% since early 2006 - BMI sees scope for further gains versus the dollar, at least in the short term. Soy prices and the PYG's relative performance against the Brazilian real will remain key factors to watch out for. With the near-term outlook for both generally rosy, we are looking for a move towards PYG3,750/US$ over the coming quarter.

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