The Brazilian real appreciated further to trade around 5.3 against the USD, its highest level since April 30th, as investors’ risk appetite improved amid optimism over a global economic recovery as more countries continue to gradually lift coronavirus lockdown restrictions. Expectations that the central bank will cut interest rates at the next meeting intensified as policymakers said that they are considering a final monetary adjustment to complement the degree of stimulus needed and after latest data showed consumer inflation in the first half of May was at 1.96%, well below its target of 4.0%. Still, the real has been trading around all-time lows, amid concerns over a deep economic recession, deteriorated fiscal position and political uncertainty.
Historically, the Brazilian Real reached an all time high of 5.99 in May of 2020. Brazilian Real - data, forecasts, historical chart - was last updated on May of 2020.
The Brazilian Real is expected to trade at 5.33 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 5.50 in 12 months time.