Brazilian currency boosted by lower inflation in the U.S.


While domestic turbulences remain, the Brazilian currency experiences a relief thanks to an external factor. Itau-BBA’s report indicates that emerging market currencies were favoured by lower-than-estimated inflation in the U.S. According to the Brazilian investment bank, the good news about inflation should delay the U.S. Federal Reserve’s decision to hike the benchmark interest rate before year-end.

In Brazil, inflows’ outlook is also on a positive trend.  The exchange rate closed the week at 3.15 reais per dollar, appreciating 0.3% and performing in line with its peers. Brazilian Central Bank’s stock of FX swaps is currently $24 billion.The currency flow maintains the positive trend. Although foreign flows to the stock market are negative by $807 million during the month.

Published by Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Group. She has a PhD in Economic History and advises companies and investment agencies in international business development.She served as Corporate Relations Director and later, on the board of the Brazilian Investment Analysts Association (APIMEC).

One thought on “Brazilian currency boosted by lower inflation in the U.S.

  1. Thanks for this important insight, Hildete. This shows how interrelated our global economies are. The journal I follow, The Economist, had the opinion that the emerging markets “bottomed” several years ago, and we hope continue on their way upward.
    Maybe in the future, we will try to invite some economics Ph.D or MBA students/ professors to help us on this blog, and on the Harvard strategists blog, which seems more important than ever for shared understanding around the globe.

    Liked by 1 person

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