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Renewed USD Selling Leads EMFX Daily Gains

EMERGING MARKETS

The Bloomberg Dollar Index is down for the first time in four days. This halts a strong rally, driven by rising USTsy yields. The renewed supply has seen a fresh bid for EMFX with notable turnarounds for MXN, BRL, ZAR and RUB.


USDBRL is the worst performing pair down 2.29% trading at 5.3850. Relief in the swap rates curve amid Central Bank rhetoric that the fiscal situation has not changed much since 2020, has bolstered the Real. Noted key resistance at 5.5257, the Nov 13 high has held well and will be a comforting technical signal for BRL bulls.

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