Brazilian Real Posts Weekly Rebound on Optimism

After several weeks dropping on high risk aversion, the Brazilian real benefited from positive news this week coming from North America and Europe, attracting investors back to emerging markets, allowing more attractive riskier assets in Brazil to force the nation’s currency up in foreign-exchange markets.

Despite China’s statement announcing new lending restrictions, risk appetite was positive for emerging markets currencies, as the EU announcde that it will provide help for Greece’s budget deficit crisis and the Federal Reserve will lift stimulus created to rescue the U.S. from last year’s recession, allowing the real to post a weekly advance versus the greenback, the euro and the pound.

USD/BRL ended the week at 1.8505 from 1.8805 on Monday.

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