Robust foreign investment and domestic consumption are protecting the Brazilian real from the US slowdown -- local consumers are powering the $1.6 trillion-economy's biggest surge in 15 years, cushioning the impact of slowing global demand. Private consumption makes up for 61% percent of Brazil’s economy; exports make up 11%. Brazilian retail sales grew 11.3% in June from the same time last year, the fastest pace since March.

The real's performance against the Mexican peso has been impressive. It gained 9.7% against the peso from June 7 to Sept. 7, the biggest three-month gain since March 2009. The real is up 0.7% in 2010 versus the peso after gaining 27% last year.

Foreign investors also bought a net $29 billion of Brazilian bonds and stocks from the start of 2010 through July, triple the amount in the same period last year.

Source: Bloomberg