The Brazilian real fell today, while yesterday it was at the
HSBC Flash China Manufacturing PMI fell to 48.0 in November from 51.0 in October. The reading below 50.0 indicates a decline of the industry. The surging borrowing costs of the European nations add to the reasons that deter investors from buying the riskier currencies, like the real.
Brazil’s economy feels the impact of the outside problems and further damps demand for the nation’s currency. The growth of the Brazilian economy was 0.3 percent in the second quarter, less than a half of the 0.8 percent expansion in the second quarter and at the slowest pace in two years. Some other fundamental data, like the credit growth, was also negative.
USD/BRL was at 1.8677 today as of 8:23 GMT after opening at 1.8615. Yesterday, it reached 1.8743, the highest level since October 4.
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