Brazilian Real Heads to Weekly Gains Despite Daily Losses

The Brazilian real fell today but was still heading to a weekly gain. The currency rallied after the nation’s central bank bolstered its interest rates, making the currency more attractive for investors, particularly carry traders.

Brazil is the largest economy in Latin America, and this makes it appealing for traders. The high interest rates mean that carry traders should be particularly interested in the Brazilian market due to its high level of return. Carry trade is a practice of borrowing money in countries with low borrowing costs and investing them in higher-yielding economies.

USD/BRL rose from 2.5737 to 2.5955 as of 13:26 GMT today but was still up 1.7 percent over the week.

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