The Brazilian real rose against the US dollar today even though experts are expecting that the Central Bank of Brazil is going to cut interest rates in October.
The central bank predicted in its inflation report that inflation will fall below the target 4.5% in 2017 and drop even more in 2018. The forecast made analysts speculate that an interest rate cut is almost guaranteed. Yet the real gained nevertheless as riskier currencies were rising while safer ones were falling during Tuesday’s trading due to risk appetite caused by the outcome of the US presidential debates.
USD/BRL dropped 0.29% to 3.2331 as of 16:59 GMT today.
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