Latin American Currencies Lead EM Carry Trades as Volatility Hits 2026 Low
Updated
Updated · Bloomberg · Jul 19
Latin American Currencies Lead EM Carry Trades as Volatility Hits 2026 Low
2 articles · Updated · Bloomberg · Jul 19
Summary
Emerging-market FX volatility has fallen to its lowest level of 2026, reviving demand for carry trades and putting Latin American currencies at the top of investors’ preferred positions.
Higher interest rates across the region are driving that appeal, letting traders borrow in low-rate markets and buy currencies that offer a larger yield premium.
Latin American currencies also rank as the most attractive in emerging markets on a carry-to-risk basis, a key metric for investors weighing return against volatility.
The combination of lower turbulence and richer yields makes the region the standout source of what Bloomberg described as the safest carry opportunities in developing markets.