The Brazilian real traded higher around 5.35 against the USD, not far from an over one-week high touched in the previous week as investors’ risk appetite improved amid hopes that a coronavirus vaccine may be available soon. Oxford and AstraZeneca trials showed its vaccine is on average 70% effective in preventing the virus and is both cheaper and easier to store and transport. Last week, Pfizer/BioNTech applied for an emergency use authorization from the US FDA. At the same time, Brazil’s central bank latest FOCUS survey showed the country’s economy will likely shrink by 4.55% this year, an improvement from previous week’s estimate of a 4.6% contraction, while inflation is projected to end the year at 3.45%.
Historically, the Brazilian Real reached an all time high of 770.43 in September of 2020. Brazilian Real - data, forecasts, historical chart - was last updated on November of 2020.
The Brazilian Real is expected to trade at 5.44 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 5.61 in 12 months time.