The Brazilian real climbed today after a report about slowing economic growth in China lead to speculation that the Asian nation will stimulate its economy, increasing attractiveness of commodity currencies.
China’s gross domestic product growth slowed from 9.1 percent in third quarter of 2011 to 8.9 percent in the fourth quarter. That caused market experts to speculate about possible stimulating measures to support growth of the economy. Potential stimulus is improving prospects for commodity demand from China, boosting currencies of emerging markets. China is the biggest trading partner of Brazil.
USD/BRL dropped from 1.7825 to 1.7790 as of 15:21 GMT today.
If you have any questions, comments or opinions regarding the Brazilian Real,
feel free to post them using the commentary form below.