1 CARRY TRADE AND REGIONS HEINER FLASSBECK Director Division on Globalization and Development Strategies 2010

EVOLUTION OF PRICES IN SELECTED MARKETS AND COUNTRIES, OCTOBER 2008–JUNE 2010 EVOLUTION OF PRICES IN SELECTED MARKETS AND COUNTRIES, OCTOBER 2008–JUNE 2010 (Index numbers, 1 OCTOBER 2010 = 100)

DAILY MOVEMENTS OF PRICES AND RETURNS BETWEEN 11/2008 AND 11/2009 IN RELATION TO THE EXCHANGE RATE OF THE BRAZILIAN REAL TO THE JAPANESE YEN

Correlation between day-to-day price movements of currencies of selected countries (in relation to Japanese Yen) and selected equity prices indices, commodity price indices and CDS spreads, January January 2010

5 YEN-CARRY TRADE ON THE ICELANDIC KRONA, US DOLLAR AND BRAZILIAN REAL, Note: A positive change in the exchange rate means an appreciation of the corresponding currency vis-à-vis the yen.

6 YEN-CARRY TRADE ON THE ICELANDIC KRONA, US DOLLAR AND TURKEY LIRA,

7 CARRY TRADE OPPORTUNITIES OF THE ICELANDIC KRONA VIS-À-VIS THE DOLLAR, 2005–FEBRUARY 2010

8 CARRY TRADE OPPORTUNITIES OF SELECTED CURRENCIES VIS-À-VIS THE DOLLAR, 2005–FEBRUARY 2010

9 UNCOVERED INTEREST RETURNS, EXCHANGE-RATE CHANGES, INFLATION AND INTEREST RATE DIFFERENTIALS, ICELAND

10 UNCOVERED INTEREST RETURNS, EXCHANGE-RATE CHANGES, INFLATION AND INTEREST RATE DIFFERENTIALS, BRAZIL

11 UNCOVERED INTEREST RETURNS, EXCHANGE-RATE CHANGES, INFLATION AND INTEREST RATE DIFFERENTIALS, TURKEY

12 UNCOVERED INTEREST RETURNS, EXCHANGE-RATE CHANGES, INFLATION AND INTEREST RATE DIFFERENTIALS, CHINA

13 UNCOVERED INTEREST RETURNS, EXCHANGE-RATE CHANGES, INFLATION AND INTEREST RATE DIFFERENTIALS, EASTERN EUROPE Speculation opportunities, appreciation trend and volatility persist despite the reduction in interest rates.

14 UNCOVERED INTEREST RETURNS, EXCHANGE-RATE CHANGES, INFLATION AND INTEREST RATE DIFFERENTIALS, ASIA Little speculation opportunities, moderate average appreciation and volatility.