Excerpt from: Forex Forecast
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| October 30, 2008 | | Will efforts by Brazil to tide the fall of the real in currency trading fail? | Not too long ago, the Brazilian real was one of the hottest currencies around. Now, like so many emerging market currencies in FX trading, the real is taking a nosedive.
In order to stymie the fall, the Brazilian government is injecting $50 billion into the markets. However, reports the Forex Blog, this may not help:
Call it a lack of confidence, or a sudden aversion to risk. Either way,
investors are fleeing regions that only months ago, they were still
flocking to in droves.
Brazil aptly illustrates the problems facing emerging market currencies right now. With a global recession underway, investors are looking for assets that are less risky, and that means emerging market currencies aren't seeing much demand.
| Topic Tags: Brazilian real, currencies FX trading, emerging market, emerging market currencies, Forex blog, FX trading | |
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