Forex News

The Brazilian real is starting this month extending last week’s advance and reverting a negative trend from the beginning of the year, as the appeal for assets in the country are attracting foreign capital inflows and helping the real to beat a number of currencies in foreign-exchange markets.

The emerging market Brazilian currency advanced today after carnival’s bank holidays, fueled by a rally in the nation’s stocks supported by better than expected data published today in the U.S., allowing the real the reach high levels versus the pound and the euro.

After several weeks dropping on high risk aversion, the Brazilian real benefited from positive news this week coming from North America and Europe, attracting investors back to emerging markets, allowing more attractive riskier assets in Brazil to force the nation’s currency up in foreign-exchange markets.

The Brazilian real was one of the emerging market currencies that profited from an increase in risk appetite after speculations suggesting that the EU will help Greece to solve its budget deficit crisis raised demand for commodities and assets in the South American country, and among other emerging markets.

The Brazilian real, ranked as the best performing currency in foreign-exchange markets during the past year, posted another weekly drop and ended the month losing versus most of the main traded currencies as appeal for Brazilian raw materials declined on renewed risk aversion.

The Brazilian real continued to be influenced by bearish equities and commodities markets and did not manage to pare gains after falling during the most of the time last week.

The Brazilian currency was affected by a new wave of risk aversion after U.S. President Barack Obama proposed new regulations for financial instituitions in the country, raising concerns among traders that avoided emerging markets this Thursday.

The Brazilian real touched the weakest level in a month as risk aversion remained predominant in today’s trading session globally, since equities and commodities markets continued to follow a bearish trajectory in most of the key-economic regions around the world.

After a week of losses versus most of the main traded currencies in foreign-exchange markets, the Brazilian real advanced today fueled by a positive performance in commodities and equities markets.

The Brazilian real posted the fourth straight day of decline versus the U.S. dollar as speculations suggest that the Treasury is likely to start a debt selling plan to buy dollars, declining attractiveness for the real in currency markets.