Brazilian Real Ends Session with Losses

The Brazilian real ended today’s session with losses due to concerns that a new president will not be able to form a strong enough government to tackle country’s economic problem. The general risk-negative market sentiment also did not play in favor of the currency.
Incumbent President Dilma Rousseff contests for the seat with Minas Gerais Senator Aecio Neves in the second round of presidential elections. Current polls show that votes divided almost evenly with Neves having 46 percent and Rouseff having 44 percent. The result indicates that neither candidate has enough support to freely perform bold economic reforms in case of victory. Such outlook makes the real less appealing for overseas investors.
USD/BRL rose from 2.3925 to close at 2.4292 today.

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