The Brazilian real gained today despite the speculation that the central bank will be forced to cut the interest rates further as the global economic growth stalls.

China decreased the required amount of cash that banks should keep as reserves. Economists think that the most likely reason for such decision is the concern that the slowing world economy will hurt the nation’s exports. That’s just one of the signs that China expects slower economic growth and that’s bad for real as the Asian nation is biggest trading partner of Brazil. The expectations of slower growth triggered talks that the Brazilian central bank will be forced to cut its interest rates further.

USD/BRL fell from 1.8466 to 1.8053 as of 12:53 GMT today.

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