Open trading account 
While the recent interest rates increase in Brazil to 8.5% along with other price hikes has created domestic unrest across the country that has been called the “Brazilian Spring” by some, for international currency traders there is reason to rejoice. In the current low interest rate environment, there has been a strong need for the profitable carry trade that used to exist with the Brazilian Real. With interest rates rising now, it has returned, with foreign currency traders cheering in While t…
annatimone's Blog
What do you think about Brazil?
Happy Monday!.. I thought I would start Monday with a puzzling question. Any thoughts about Brazil? Brazil raised key interest rate a half-point to 8.5 pct. Do you think it’s good or bad for Brazil? I think it will slow down Brazilian economy, because raising interest rates will slow down exports. The higher costs of living for some or, more precisely, higher cost survival for most is unavoidable. Especially, small businesses will feel the impact and suffer tremendously. Politica…
Task 2 - Japanese Yen
I picked Japanese yet, because I believe Yen due its utility in the carry trade. A “carry trade” consists of borrowing a currency with a low interest rate, exchanging this money into another currency, and investing exchanged money in higher yielding and higher risk investments. These investments can include but are not limited to emerging markets, US-based stocks, and Japanese stocks. In turn, investors are essentially getting paid money when they choose to invest in a depreciating currency. In…