Brazilian Real Rallies as There Is Still Some Hope for Europe

The Brazilian real rallied today on hopes that European politicians would find a way out of the sovereign-debt crisis that plague the countries of the European Union. Riskier currencies of emerging markets rallied on improving market sentiment.
Leaders of Germany, France, Italy and Spain meet in Rome today, giving investors hope that some cure for the debt contagion may still be found. Luxembourg Prime Minister Jean-Claude Juncker said that money for Spain’s rescue will be taken from the temporary bailout fund first and only then from the permanent one. Market analysts were surprised by positive mood on the Forex market as they were expecting pessimism after Moody’s downgraded several major banks.
USD/BRL slid from 2.0625 to 2.0574 as of 17:23 GMT today and its intraday low was at 2.0480.

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