Real Gains as Traders Expect Central Bank’s Support

The Brazilian real rose today on speculations that the central bank will support the currency after the recent decline that followed the US Federal Reserve’s policy announcement.

The real fell last week, as well as many currencies of emerging economies, after the Fed announced its quantitative easing tapering. The currency rebounded as investors were exiting bets on additional gains of the US dollar before the year-end. The real is still under pressure from negative investors’ outlook after rating agencies have downgraded Brazil’s credit rating earlier this year.

USD/BRL fell from 2.3780 to 2.3570 as of 21:25 GMT today.

If you have any questions, comments or opinions regarding the Brazilian Real,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *