"The (Brazilian) real is also rallying as record low borrowing costs in the U.S. and Europe prompt…"
September 24, 2010 in news review
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The (Brazilian) real is also rallying as record low borrowing costs in the U.S. and Europe prompt investors to seek higher returns in faster-growing developing nations. Brazil, Latin America’s biggest economy, will expand more than 7 percent this year for the first time since 1986, according to a central bank survey of analysts. The country’s 10.75 percent benchmark lending rate is more than 900 basis points, or 9 percentage points, higher than the key rates in the U.S., U.K., Japan and euro zone.
“The search for yield is still in place,” Melzi said.
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– Foreigners Bet Billion on Mantega Failing to Curb Real: Brazil Credit – Bloomberg