Brazilian Real Rises To 2-day High Vs U.S. Dollar Ahead Of Brazil Rate Decision
July 29 2015 - 9:49AM
RTTF2
The Brazilian real firmed against the U.S. dollar in early New
York deals on Wednesday, as traders expect the Central bank of
Brazil to hike interest rate at its monetary policy decision, due
later in the day.
Economists are forecasting a 50 basis points increase in rate to
14.250 percent, from the present 13.750 percent, to arrest
inflation.
The Brazilian real fell sharply on Tuesday after Standard &
Poor's downgraded its Brazil's credit rating outlook to 'negative'
citing challenging political and economic circumstances.
The 'negative' outlook reflects a greater than one-in-three
likelihood that the policy correction will face further slippage
given fluid political dynamics and that the return to a firmer
growth trajectory will take longer than expected.
The Brazilian currency advanced to a 2-day high of 3.3371 versus
the greenback, up by 3.2 percent from Tuesday's record low of
3.4475. The pair ended deals at 3.3560 yesterday.
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