Loading ...News - Buy Brazil’s Real Versus Australian Dollar, Morgan Stanley Says
Feb. 17 (Bloomberg) — Investors should buy the real against the Australian dollar, citing the 5 percent decline in the Brazilian currency this year against the Aussie as “too sharp, too fast,” Morgan Stanley said.
“We see value in the Brazilian real at current levels,” Vitali Meschoulam, a New York-based emerging-market strategist, wrote in a research note to clients today. “The Brazilian real’s sell-off was perhaps too sharp, too fast, and is potentially out of line with the large inflows expected for the next several years that will be necessary to finance infrastructure developments.”
Investors should buy the real versus the Australian dollar through 12-month non-deliverable forwards, according to the note.
Source: BusinessWeek.
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