The Brazilian real ticked down as the developments in the global economy made investors favor safer assets over riskier ones.
The US politician weren’t been able to agree on budget cuts. Germany’s Finance Ministry admitted that the nation’s economic growth was “noticeably slower”. All in all, it remains very hard to convince investors to buy riskier currencies, even with promises of higher yield.
Unfortunately for Brazil and its currency, the foreign problems have impact on the country’s economy. Analysts slash their forecasts for the Brazilian economic expansion. There’s the speculation that Brazil’s government may cut its estimate for growth to 3.5 percent after it reduced the outlook to 3.8 percent on November 18.
USD/BRL was up today from 1.8077 to 1.8084 as of 8:30 GMT after falling to the intraday low of 1.8035.
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