Brazilian Real Retains Weakness Ahead of Election

The Brazilian real fell today as concerns about the outcome of the presidential elections deter investors from buying the currency, especially considering that the current geopolitical situation in the world does not encourage to buy riskier assets.
Uncertainty about the outcome of the elections was driving the real down previously and continues to hurt the currency now. Currently, polls show that Aecio Neves has more votes than incumbent President Dilma Rousseff. Such results may be considered positive for the real as the nation’s economy was not performing particularly well during the Rousseff’s leadership. Yet everything may change before the voting on October 26, and market participants are not willing to risk buying the real during political uncertainty.
USD/BRL rose from 2.4046 to 2.4449 as of 16:52 GMT today.

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