The Brazilian real dropped today as uncertainty about an outcome of the discussion about reduction of Greek debt made traders sell riskier currencies and stick to safer assets.
The story of Greek debt was dragging for too long and Forex traders are afraid that it may end with a disorderly default. There were some positive macroeconomic indicators from Europe, but that wasn’t enough to alleviate fears. All currencies, except for safer ones, usually suffer in times of uncertainty and Brazil’s real behaved according to this rule today.
USD/BRL climbed from 1.7165 to 1.7280 as of 16:18 GMT today. The currency pair has reached 1.7179, more than a three-month low, on February 3.
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