Brazilian Real Falls as Current Account Deficit Widens

The Brazilian real dropped today after data that showed an increase of the current account deficit. Yesterday’s decision of the nation’s central bank to keep monetary policy unchanged was also unsupportive to the currency.
The current account gap widened from $3.076 billion in September to $4.166 billion in October. Close to the end of the previous session, the Central Bank of Brazil announced that it is leaving its main interest rate at 14.25 percent. The central bank remained passive even as many economists and even the couple of voting members argued that it should have raised rates to combat the surge of inflation.
USD/BRL rose from 3.7425 to 3.7585 as of 14:57 GMT today.

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