Brazilian Real Pressures Starting to Ease

A rebound in economic activity and near-term stabilisation in the fiscal accounts has alleviated pressure on the Brazilian real Although the economic outlook in Brazil remains shrouded in uncertainty as the Covid pandemic continues to rage, pressures on the currency...

Rising Pressure on BCB for FX Intervention

The BCB reportedly stepped into the FX market last week with a spot sale of dollars that was not accompanied by a repurchase commitment or other intervention measures – the first time this has happened in a decade. The move to stem the slide in the BRL has been...

Brazil: Speculators Take Profits on BRL and BRL Assets

We turned bullish on Brazil back in February.  Our leading indicators had been turning up, the effects of previous Selic hikes had begun to recede, and we expected inflation would fall, opening up the path for interest-rate cuts.  Year-to-date, Brazil has delivered...