Brazilian Real Strengthens Ahead of Election Month

The Brazilian real rose today as investors wait for an outcome of the presidential elections that will occur next month and a monetary policy decision of the Federal Reserve that will be announced tomorrow.
According to polls, the current president Dilma Rousseff and opposition candidate Marina Silva have roughly the same amount of votes. The resulting political uncertainty could have resulted in excessive volatility for the real if not for the fact that traders are reluctant to risk ahead of major events like Fed’s policy decision. The US central bank starts its two-day meeting today and will announce its decision tomorrow.
USD/BRL fell from 2.3400 to 2.3242 as of 16:51 GMT today after rising to the high of 2.3535 intraday.

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