Growth Forecast Sets Brazilian Real High
The Brazilian real benefited today from positive events in both domestic and international spheres as risk appetite rose worldwide, maintaining the Brazilian currency as the best performing currency among the main traded in
Brazilian and global stocks rose today after the Japanese currency posted a higher than expected growth and a the majority of analysts agree that the South American economy will expand more than previously imagined in 2010, forcing the real up versus most of the main traded currencies this Monday.
USD/BRL traded at 1.7092 as of 16:59 GMT from an opening rate of 1.7225 today.
If you have any questions, comments or opinions regarding the Brazilian Real, feel free to post them using the commentary form below.
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Earlier News About the Brazilian Real:
- Brazilian Real Ends Losing Streak on Global Optimism (2009-11-14)
- Brazilian Real Down on Intervention Talks (2009-11-12)
- Brazilian Real Rises on G-20 Stimulus (2009-11-09)
- Brazilian Real Gains Sharply on Risk Demand (2009-11-07)
- Brazilian Real Extends Gains on Domestic Optimism (2009-11-04)
4 Comments
where do you see the real in comparison to the dollar end 2010 and 2011
It’s hard to make forecasts for 2010 or even 2011 but, in my opinion, BRL can continue appreciating against the dollar for as long as there are no serious global financial troubles (like the crisis that began in October 2008). Anyway, BRL is strongly influenced by the central bank’s decisions and the CB may want to depreciate it with the interventions or some market limiting measures.
Andrei, I could use your opinion. I am about to transfer a fairly large amount of money to Brazil(in dollars). Obviously, I wish the transfer was a few months ago! But, in your best opinion for immediate future, do you see a better exchange rate for me between now and the end of the year or do you think it will just sit around where it is now? It seems like the CB in Brazil is not willing to let it go below 1.7 and I have been reading that they prefer it to be between 1.9(low side) and 2.6(high side). Is there any reason to believe the first quarter of next year would be better for me? Do you forsee them depreciating the real anytime soon?
I would say that the better rate for you (higher USD/BRL) is possible in the first quarter of 2010 but I wouldn’t bet on it.