The Brazilian real went down today as the fears of the spreading European crisis deter the investors from the riskier currencies.
The worries about the fiscal crisis surged after the Hungarian Prime Minister said that the previous government lied about the state of the nation’s economy and manipulated figures to conceal the possibility of the default. The concern about the possible spreading of the crisis to Eastern Europe heightened after the threat of the default in Hungary was revealed. The ensuing uncertainty amongst the traders discouraged them from buying Brazilian assets.
USD/BRL traded at about 1.8640 as of 9:40 GMT today after opening at 1.8635.
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