The Brazilian real fell today as the Forex market sentiment was negative for riskier currencies of emerging markets. Market participants prefer safer currencies to higher-yielding ones due to geopolitical risks.
The conflict between Israel and Hamas in Gaza and the crash of Malaysian jet over Ukraine continue to spoil investors’ mood even though there were no more new significant developments in the regions lately. While some currencies were able to weather the risk-negative sentiment with help of domestic fundamentals, the real were among losers. Brazil’s fundamentals were not helping the real as analysts surveyed by the Central Bank of Brazil predict that country’s economic growth will slow more than two times this year from the previous one.
USD/BRL was up from 2.2192 to 2.2255 as of 17: 06 GMT today, reaching the high of 2.2326 intraday.
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