Brazilian Real Gains on US Dollar After Services PMI Report

The Brazilian real gained on the US dollar today. And while the greenback was soft by itself, domestic macroeconomic data also helped Brazil’s currency.
The headline seasonally adjusted IHS Markit Brazil Services PMI was at 51.4 in August, showing that the sector continued to expand with a robust pace. With that said, the index fell from July’s 52.2, meaning that expansion was slowing. Pollyanna De Lima, Principal Economist at IHS Markit, commented on the result:

Brazilian service providers benefited from favourable economic conditions halfway through the third quarter, with activity growing for the second month in a row.

USD/BRL dropped 1.61% to 4.1010 as of 17:24 GMT today.

If you have any questions, comments, or opinions regarding the Brazilian Real, feel free to post them using the commentary form below.

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