FXStreet (Córdoba) – In the last day of trading in Brazil, the real is falling sharply across the board and is the worst performer in the currency market.
USD/BRL is up by 3.40%. The pair opened the day around 3.85 and then jumped hitting a 1-week high at 4.015. Afterwards it pulled back modestly and it was hovering around 4.00.
BRL among the worst of 2015
The Argentine Peso and the Brazilian Real are among the currencies that dropped the most during 2015. USD/BRL started the year at 2.68 and is about to end around 4.00, affected by a stronger US dollar and Brazil’s problems, that includes economic recession, inflation above 10%, a higher budget deficit, political tensions and a gigantic corruption scandal. During the year, it lost the “investment grade” by two of the main rating agencies.
The US dollar has been rising against the real since July 2011. Back then, USD/BRL bottomed at 1.54 (lowest since 1999) and started to move to the upside. After August 2014, the rally of the pair gained momentum and peaked in September 2015 at 4.24 (intra-day record).
In the last day of trading in Brazil, the real is falling sharply across the board and is the worst performer in the currency market.
(Market News Provided by FXstreet)