The Brazilian real dropped as worries about the global growth reduced chances that the nation’s central bank will perform an interest rate hike.
Analysts estimated that the Brazilian economy grew just 1 percent in the last year. The Central Bank of Brazil slashed interest rates to the record low of 7.25 percent to stimulate growth. The bank is not likely to change the policy as macroeconomic indicators from various countries across the world, including the United States and Europe, suggest that global economic growth slows.
USD/BRL rose from 1.9638 to 1.9760 as of 18:36 GMT today.
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