# LatAm FX: Carry exposed as volatility rises – BNY

> BNY analysts say Latin American carry trades are increasingly vulnerable as realized volatility rises and G10 rates drift higher. They note selling pressure in the Colombian peso and Chilean peso, and weak buying momentum in the Brazilian real. Brazil and Mexico central banks are expected to hold policy this week.

- Date: 2026-11-04 · published 2026-11-04T12:08:17.704Z
- Category: macro · region Latin America · magnitude low
- Page: https://feedsoft.ai/events/79613-latam-fx-carry-exposed-as-volatility-rises-bny
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Colombian Peso (COP per USD)](https://feedsoft.ai/c/USDCOP.md)

## Why it matters

Currency weakness in Latin America can make regional exports cheaper for buyers while raising feed input costs for importers, and it can shift soybean and meal export flows.

## Read by commodity

- USDBRL: bullish ▲
- USDCOP: bullish ▲
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2021-08-26 | [Latam FX rattled by Fed fears, rising COVID cases \| Financial Post](https://feedsoft.ai/events/45773-latam-fx-rattled-by-fed-fears-rising-covid-cases-financial-post.md) | -1.3% | +0.9% |
| USDBRL | 2023-10-09 | [Latam FX Talking: Carry trade unwind recommends caution \| ING THINK](https://feedsoft.ai/events/33831-latam-fx-talking-carry-trade-unwind-recommends-caution-ing-think.md) | -1.9% | -5.1% |
| USDBRL | 2021-02-03 | [Latam currencies fall on pandemic worries as infections rise](https://feedsoft.ai/events/48850-latam-currencies-fall-on-pandemic-worries-as-infections-rise.md) | +1.0% | +7.2% |
| USDBRL | 2022-04-27 | [Volatility roars back to Argentina's FX market on commodities drop \| Buenos Aires Times](https://feedsoft.ai/events/42097-volatility-roars-back-to-argentina-s-fx-market-on-commodities-drop-buenos-aires.md) | +0.3% | -3.2% |
| USDBRL | 2022-06-15 | [EMERGING MARKETS - Latam FX slips after bruising selloff, Peru's sol rises - Monex USA](https://feedsoft.ai/events/41237-emerging-markets-latam-fx-slips-after-bruising-selloff-peru-s-sol-rises-monex.md) | +0.4% | +5.6% |

## Sources

- fxstreet.com: https://www.fxstreet.com/news/latam-fx-carry-exposed-as-volatility-rises-bny-202611040913

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