The Brazilian real advanced today amid the positive sentiment created by the news from China and Europe, even as the data suggested that Brazil’s industrial output declined, spurring speculations that the central bank will keep interest rates record low.
Brazil’s heavy-vehicle traffic declined 3.1 percent in December from a year ago and cardboard sales dropped 0.9 percent, suggesting that industrial production weakened. That may cause the Central Bank of Brazil to keep its monetary policy accommodative even as rising inflation calls for reducing stimulus. The real remained firm even amid such negative environment as the positive China’s trade data and the policy decision of Europe’s central bank lifted the traders’ mood and increased demand for risky assets.
USD/BRL fell from 2.0380 to 2.0327 as of 17:33 GMT today after rising to 2.0450.
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