6 Aug 2015
Brazilian real sinks; USD/BRL above 3.50, at fresh 12-year high
FXStreet (Córdoba) - USD/BRL is rising more than 1.60% on Thursday and broke above 3.50 for the first time since March 2003 as the Brazilian real sinks across the board.
The currency of Brazil is the worst performer in the currency market on Thursday as the political crisis intensifies. Rousseff administration’s strategy to reduce the budget deficit suffered a setback after Congress voted for an increase in spending. The bill still needs to pass a second round and then would go to the Senate.
While Rousseff popularity continues to reach new record lows, political and economic uncertainty continues to rein. Last week Standard and Poor’s changed Brazil’s outlook from stable to negative. The county is about to lose the “investment grade” status and the sell-off of the BRL continues.
Today the US dollar jumped against the real and reached 3.56 before pulling back modestly. USD/BRL is rising for the sixth trading day in a row and is headed toward the highest close in 12 years.
The currency of Brazil is the worst performer in the currency market on Thursday as the political crisis intensifies. Rousseff administration’s strategy to reduce the budget deficit suffered a setback after Congress voted for an increase in spending. The bill still needs to pass a second round and then would go to the Senate.
While Rousseff popularity continues to reach new record lows, political and economic uncertainty continues to rein. Last week Standard and Poor’s changed Brazil’s outlook from stable to negative. The county is about to lose the “investment grade” status and the sell-off of the BRL continues.
Today the US dollar jumped against the real and reached 3.56 before pulling back modestly. USD/BRL is rising for the sixth trading day in a row and is headed toward the highest close in 12 years.