How Brazil ETFs Are Falling Despite a Strong Real

In this episode of The Global Economy Podcast, Lucas and Luna examine a puzzling divergence in emerging markets: while Brazil's currency, the real, has strengthened against the dollar, the iShares MSCI Brazil ETF (EWZ) has dropped nearly 5 percent in the past week. They unpack the specific forces driving this—from commodity price cycles to domestic political risk and the unwinding of carry trades. Drawing on June 2026 data, including the trade-weighted dollar index at 118.9 and the real's resilience amid global uncertainty, they explain why currency strength alone doesn't translate into equity returns. The hosts contrast Brazil's situation with other emerging markets like South Korea and Taiwan, which have seen even steeper ETF declines. They also touch on how U.S. tariff proposals and geopolitical tensions in Iran are reshaping capital flows. Listeners will walk away with a concrete framework for evaluating emerging-market ETFs beyond headline currency moves. #Brazil #EmergingMarkets #EWZ #BrazilReal #CurrencyMarkets #CarryTrade #Commodities #Geopolitics #GlobalTrade #Tariffs #IranWar #SouthKorea #Taiwan #DollarIndex #CapitalFlows #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo