The Brazilian real advanced today due to the positive sentiment on the Forex market after the presidential elections in Ukraine. As for Brazil itself, nation’s policy makers have problems taming inflation without damaging economic growth, but this did not hurt the real, at least for now.
The Ukrainian elections have occurred without incidents, while Russian President Vladimir Putin said that he is going to respect the choice of the Ukrainians. This eased tensions about the political crisis in the Eastern European nations and had a positive effect on the FX traders’ mood. Meanwhile, economists speculate that Brazil’s central bank will pause its cycle of monetary tightening as economic growth of the South American country is expected to slow even as inflation threatens to breach the central bank’s target range to the upside.
USD/BRL fell from 2.2222 to 2.2206 as of 17:15 GMT today.
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