Jul
19
Goldman Sachs Says Take Profit on Emerging-Market Carry Trade
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Recommendation was long Brazil, Russia, India and South Africa
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Mexican peso and Turkish lira seen as having upside potential
Goldman Sachs told investors to close out of an emerging-market carry-trade recommendation it made eight months ago, saying there was little scope for appreciation.
Following the bank’s advice to buy Brazil’s real, Russia’s ruble, India’s rupee and South Africa’s rand while shorting the Korean won and Singapore dollar would have delivered a 9.7 percent return, strategists Marty Young and Michael Cahill said in a note to clients. While Goldman Sachs is overall positive on emerging-market currencies, the analysts said the real, ruble and rupee were unlikely to strengthen much further in coming months…
Goldman Sachs Says Take Profit on Emerging-Market Carry Trade
