Brazilian Real Extends Gains on Domestic Optimism

Several reasons are providing support for the Brazilian currency to extend this week’s gains as risk appetite rose today increasing demand for commodities, injecting money in Latin American stocks, consequently adding confidence towards the real’s outlook.

The Federal Reserve is likely to remain interest rates in the United States at a record low of 0.25 percent tomorrow, fact which is forcing investors to search for higher-yielding opportunities in emergent markets, being Brazil one of the favorite destinations currently among traders, which are influencing positively the rates for the Brazilian currency this Wednesday.

USD/BRL traded at 1.7260 as of 17:12 GMT from an opening rate of 1.7570.

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