Brazil Real Rises to One-Year High as Yields Lure Carry Trades
- Central banks cutting rates makes real yield more attractive
- Brazil’s real is the world’s best performer this year
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Brazil’s real climbed to a one-year high after policy makers in Latin America’s largest economy sought to reassure investors and as sought out securities paying some of the world’s highest interest rates.
The real gained 0.9 percent to 3.1655 per dollar on Friday, extending the weekly advance to 2.6 percent. The Bloomberg Dollar Spot Index, which tracks the U.S. currency against a basket of its top peers, added 0.3 percent. The real closed stronger for the fourth consecutive week.