The Brazilian real fell today as industrial production declined in May and the contraction was bigger than analysts have predicted. The data led to speculations that the central bank will not be able to increase pace of interest rate hikes.
Brazilian industrial output fell 2 percent in May from April. The drop was almost twice as big as experts have promised (1.1 percent). The Central Bank of Brazil has raised borrowing costs twice this year and will likely do so again, but the data suggests that the rate of increases will not accelerate.
USD/BRL was up from 2.2263 to 2.2404 as of 14:34 GMT today.
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