The Brazilian real depreciated 1% to trade around 5.6 per USD, the weakest level since November 4th 2020, as investors remained concerned about the government's policies and the likely approval of a new emergency aid putting pressure on the spending ceiling. On the economic data front, the unemployment rate in Brazil fell 0.7 percentage points from the previous quarter to 13.9% in the three months to December, matching estimates. Meantime, Brazil's nominal budget surplus narrowed to BRL 17.9 billion in January of 2021 from BRL 19.1 billion a year ago; while gross government debt reached 89.7% of GDP in January, the highest level on record. The Brazilian real was set for a monthly loss of 2% and a weekly fall of about 3.6%, amid lingering fiscal woes and as the sudden intervention of President Bolsonaro in Petrobras spooked investors.
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 February of 2021.
The Brazilian Real is expected to trade at 5.59 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 5.76 in 12 months time.