The Brazilian real crashed today after the nation’s central bank refrained from raising interest rates, the move that led to speculations that there will be no more rate hikes in Brazil this year.
The Central Bank of Brazil left its key Selic rate at 11 percent during yesterday’s policy meeting. While the bank said in the statement that the rate remains stable “at this moment”, swap trading revealed that market participants bet that the central bank will not change its monetary policy until July 2015. Such outlook made the real the worst performer among currencies of emerging markets following the ruble.
USD/BRL was up from 2.2230 to 2.2458 as of 16:24 GMT today after falling to the low of 2.2123 intraday.
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