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    Iran conflict forces EM carry trade unwinds

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    The Iran conflict has forced investors to liquidate profitable emerging market foreign exchange options positions, as a broad risk-off move triggered stop-outs and value-at-risk breaches across multiple currency pairs.

    “Any positions that people have held for the last few months – positions where they’ve actually made money – those are the ones getting cut very quickly,” says Sagar Sambrani, an executive director in the G10 FX options trading team at Nomura.

    The Brazilian real, Korean won, Indian

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