The Brazilian real fell against the US dollar as the pessimistic outlook for Brazil’s economy coupled with concerns about the global economic slowdown made traders not particularly interested in the nation’s currency.
The real was trading near the record low amid speculations that the Brazilian recession will be worse than it has been expected previously. Earlier this month, Standard & Poor’s lowered the country’s credit rating below the investment grade with negative outlook. This, together with the general risk-negative sentiment on the Forex market, made the Brazilian currency unattractive to investors.
USD/BRL rose from 3.9480 to 3.9759 as of 19:38 GMT today, reaching the high of 3.9985 intraday.
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