I'm thinking about going into the Brazilian Real 3 month bill it yields about 9% interest. I was just looking for ways to hedge against the currency risk. When I come back to U.S. Dollars. Just wondering if anyone has had any luck with this?
Hedge with currency futures. The U.S. dollar profit when added to the U.S. dollars resulting from conversion of the Brazilian Real principal and interest into U.S. dollars at the lower dollar / Brazilian Real exchange rate, results in an effective rate equivalent to the Brazilian Real futures price at the start of the hedge. http://data.tradingcharts.com/futures/quotes/BR.html