The Brazil real rose today even though economic data from the South American country continued to disappoint, suggesting that the central bank should reduce the pace of interest rate hikes.
Brazil’s retail sales rose 3.5 percent in January from a year ago, missing the analysts’ estimate of 5.3 percent. The report followed yesterday’s unfavorable inflation data. The poor economic indicators led to speculations that the Central Bank of Brazil may refrain from tightening monetary policy further.
USD/BRL went down from 2.3605 to 2.3444 as of 16:40 GMT today, while its daily low was at 2.3391.
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