Morgan Stanley, BofA see more in best carry rally since 2009

BloombergTrades focused on Latin American currencies are among the top performers. The Brazilian real, for instance, has already returned 4.5% so far in 2026, building on last year’s 23.5%. The country’s interest rates are at 15% even though inflation has slowed toward the central bank’s target range. The Mexican peso’s carry trade has returned 4.3% this year, with Deutsche Bank maintaining a bullish stance on the currency.Citi strategists too are among those recommending buying the real against the dollar ...