Brazilian Real Slides 2.7% in June as Dollar Rebound Unwinds Carry Trades

1 articles · Updated · Bloomberg · Jun 30

A 2.7% June drop has put the Brazilian real on track for its worst month of 2026, even after trading little changed against the dollar on Tuesday.
The selloff reflects a stronger dollar and shifting interest-rate expectations, which are prompting investors to unwind a once-favored real carry trade.
That retreat has cut into the real’s earlier outperformance, while MSCI’s emerging-market currency index has fallen 1% this month.
The move underscores how quickly high-yield emerging-market currencies can turn into collateral damage when dollar momentum and rate views swing.