Brazilian Real Rebounds After Losses on Weak GDP Growth
The Brazilian real managed to rebound after it fell earlier today as economic growth turned out to be slower last quarter than analysts had predicted, fueling speculations that policy makers may allow the currency to depreciate.
Brazil’s gross domestic product grew 0.9 percent in the third quarter of this year, compared to market expectations of 1.9 percent growth. The worse-than-expected data spurred talks that the central bank will intervene to weaken the currency as a measure to support growth. The real fell initially, but later managed to shrug off the bad news.
USD/BRL was down from 2.1378 to 2.1139 as of 11:50 GMT today, following the rise to 2.1423.
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Earlier News About the Brazilian Real:
- Brazilian Real Drops Despite Positive FX Market Sentiment (2012-11-22)
- Brazilian Real Rises on Inflation Expectations (2012-11-06)
- Brazilian Real Falls as Analysts Cut Outlook for Interest Rates (2012-11-05)
- Brazilian Real Goes Down as Central Bank Cuts Selic Rate (2012-07-12)
- Brazilian Real Rallies as There Is Still Some Hope for Europe (2012-06-22)