The Brazilian real declined today and may drop 8 percent by the end of the year as the unnecessary excessive government spending increased the inflation.
The government spending increased to 63 percent of gross domestic product in February from 59 percent in December 2008. The inflation is expected to reach 5.32 percent in 2010. The experts say that the Brazil’s economy looks sufficiently recovered and additional government stimulus isn’t really necessary.
USD/BRL traded at 1.7650 as of 10:50 GMT today after it opened at 1.7525. EUR/BRL traded at about 2.3482 up from the opening level of 2.3284.
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