# Latam FX Talking: Carry trade unwind recommends caution | ING THINK

> ING's Latam FX note says high US rates and a carry trade unwind are pressuring high-yielding Latin American currencies, including the BRL and MXN. USD/BRL was about 5.17 and USD/MXN about 18.22, with a mildly bullish dollar bias.

- Date: 2023-10-09 · published 2023-10-09T12:00:00.000Z
- Category: macro · region Latin America · magnitude low
- Page: https://feedsoft.ai/events/33831-latam-fx-talking-carry-trade-unwind-recommends-caution-ing-think
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A weaker BRL and MXN makes Brazilian and Mexican exporters more competitive, which can support Brazilian soy and corn export selling and pressure dollar-denominated prices for feed inputs.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2019-06-17 | [FX Talking: The beginning of the end of the dollar’s rally \| reports \| ING THINK](https://feedsoft.ai/events/9810-fx-talking-the-beginning-of-the-end-of-the-dollar-s-rally-reports-ing-think.md) | +0.7% | +0.6% |
| SOY | 2024-04-17 | [FX Daily: The big unwinding \| articles \| ING THINK](https://feedsoft.ai/events/30940-fx-daily-the-big-unwinding-articles-ing-think.md) | +2.0% | +4.7% |
| SOY | 2025-01-13 | [FX Talking: Trump’s currency, your problem \| bundles \| ING THINK](https://feedsoft.ai/events/26702-fx-talking-trump-s-currency-your-problem-bundles-ing-think.md) | +2.0% | +3.6% |
| SOY | 2023-11-03 | [FX: Dollar to defy seasonal trends \| articles \| ING THINK](https://feedsoft.ai/events/11460-fx-dollar-to-defy-seasonal-trends-articles-ing-think.md) | +1.8% | +1.6% |
| SOY | 2019-05-08 | [EM FX: Floating in a sea of red \| articles \| ING THINK](https://feedsoft.ai/events/10432-em-fx-floating-in-a-sea-of-red-articles-ing-think.md) | +0.0% | +6.4% |
| DXY | 2024-04-17 | [FX Daily: The big unwinding \| articles \| ING THINK](https://feedsoft.ai/events/30940-fx-daily-the-big-unwinding-articles-ing-think.md) | -0.3% | -1.0% |
| DXY | 2022-06-13 | [FX Talking: Summer of discontent keeps dollar in demand \| reports \| ING THINK](https://feedsoft.ai/events/7715-fx-talking-summer-of-discontent-keeps-dollar-in-demand-reports-ing-think.md) | +1.0% | +2.9% |
| DXY | 2025-01-13 | [FX Talking: Trump’s currency, your problem \| bundles \| ING THINK](https://feedsoft.ai/events/26702-fx-talking-trump-s-currency-your-problem-bundles-ing-think.md) | -0.3% | -0.9% |

## Sources

- think.ing.com: https://think.ing.com/articles/latam-fx-talking-oct-23/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.