The Brazilian Real recovered from a four-year low against the US Dollar after data showed that US employers added fewer jobs than forecast in July. The data eased investor concerns that the Federal Reserve will hold off on its plans to taper its stimulus programme which has boosted emerging-market currencies in recent months.
The Real recovered from yesterday’s decline which saw the currency close the session weaker than 2.3 per Dollar. The first time it has dropped so low in four years.
“We will continue to have this volatility until the Fed begins to unwind the stimulus, and it can be measured by the market,” said Reginaldo Galhardo, currency manager at Treviso Corretora.
Over the past three months the Real has tumbled by 13%, the biggest drop among 24 emerging-market dollar counterparts. The Brazilian Central Bank had to intervene in the currency markets in an attempt to stem the Real’s decline.
Worries were mounting that the weaker Real could prove detrimental to Brazil’s economic growth prospects as a weaker currency makes imports more expensive and would threaten to hike inflation and raise the cost of fuel. Brazil’s recent spate of protests was partly a result of hiked prices and public anger at inflated prices.
Current Real (BRL) Exchange Rates
The Pound Sterling/ Brazilian Real Exchange Rate is currently in the region of: 3.4831
The Euro/ Brazilian Real Exchange Rate is currently in the region of: 3.0382
The US Dollar/ Brazilian Real Exchange Rate is currently in the region of: 2.2986
The Australian Dollar/ Brazilian Real Exchange Rate is currently in the region of: 2.0446
The New Zealand Dollar/ Brazilian Real Exchange Rate is currently in the region of: 1.8078
The Canadian Dollar/ Brazilian Real Exchange Rate is currently in the region of: 2.2146
Correct as of 15:30 pm GMT
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