BRL weakness and rate differentials

Watching the recent move in $BRL, currently around 5.2112, up 0.35% today. We've seen a range of 5.1616–5.2396. The sustained weakness above 5.20 against the dollar is interesting, especially when considering the carry trade. With rate differentials still significant, it suggests either a strong dollar thesis overriding carry, or underlying concerns about fiscal stability/growth in Brazil.

It's prompting me to re-evaluate how much of this is pure USD strength vs. specific LatAm sentiment. Keeping an eye on other EM currencies for correlation. If this is a broader EM move, it might signal a risk-off rotation that could impact other asset classes on my watchlist, particularly those sensitive to global growth.