The Brazilian real fell today amid speculations that positive US macroeconomic data will spur the US Federal Reserve to tighten its monetary policy. Brazil’s central bank already increased its interest rates, surprising Forex market participants.
The Central Bank of Brazil increased its main interest rate to 8 percent on May 29. The bank said:
The Committee evaluates that this decision will contribute to set inflation into decline and ensure that this trend persists in the upcoming year.
Such decision was surprising to most market analysts.
USD/BRL went up from 2.1105 to 2.1335 as of 15:31 GMT today.
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