FX Favourites Still Looking Strong

With the US dollar back on the ropes, our favourite Latin currencies, once again, look set for renewed upside. First up, we look at the Brazilian real, which has come to struggle lately on the back of higher market volatility (especially following default concerns in Dubai), and recently introduced capital controls on foreign securities transactions. However, as we stated previously, bullish investor sentiment towards Brazil will unlikely be curbed by a 2% transactions tax, and renewed downside pressure on the dollar seems to reaffirm our view.

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