Reported 5 months ago
Latin American currencies, including those of Mexico, Colombia, Brazil, and Chile, experienced a decline against the US dollar as the Japanese yen rallied sharply, prompting traders to unwind carry trades funded by the yen. The yen's surge, serving as a funding currency for carry trades, led to pressure on high beta currencies such as the real and peso, causing volatility in emerging markets. On the other hand, Hungary’s forint, Thailand’s baht, and the Czech koruna were among the top gainers in the emerging market currency space. Additionally, concerns over trade restrictions and tech stock selloffs added to market woes.
Source: YAHOO