The Brazilian real strengthened past 5.5 per USD, rebounding from a two-and-a-half-year low of 5.75 on August 1st, as hawkish expectations for the Brazilian central bank compounded a weaker dollar performance abroad. This movement was supported by strong domestic economic data, including a robust 1.37% rise in the central bank's Economic Activity Index IBC-Br for June, which bolstered the real's attractiveness amid expectations of US interest rate cuts. Additionally, Brazil's annual inflation rose to 4.5% in July 2024, the highest since February, marking the fourth consecutive month of increases and aligning with expectations. While still within the central bank's target, concerns persist over high fiscal spending and economic uncertainty potentially driving inflation higher. Meanwhile, the PMI surged, reflecting the fastest growth since February 2022, reinforcing the central bank's stance on maintaining higher interest rates.
The USDBRL decreased 0.1057 or 1.89% to 5.4871 on Friday August 23 from 5.5928 in the previous trading session. Historically, the USDBRL reached an all time high of 5.99 in May of 2020. Brazilian Real - data, forecasts, historical chart - was last updated on August 25 of 2024.
The USDBRL decreased 0.1057 or 1.89% to 5.4871 on Friday August 23 from 5.5928 in the previous trading session. The Brazilian Real is expected to trade at 5.79 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 5.98 in 12 months time.