The Brazilian real appreciated towards $4.9, after touching an over one-month low of $5.1 on May 31th, as investors weighed stronger-than-expected GDP data in the first quarter, paving the way for a rosier annual outlook. Brazil's GDP expanded by 1.9% in the three months through March, rebounding from a revised 0.1% contraction in the previous quarter, above market forecasts of 1.3%. On the monetary policy front, the central bank led by Campos Neto is holding Brazil’s benchmark interest rate steady at 13.75% even as headline inflation pressures ease. Policymakers remain cautious as they see core measures still running hot, and they are trying to tame expectations that consumer price increases will accelerate again later this year while also remaining above the bank’s targets through 2025.
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 June of 2023.
The Brazilian Real is expected to trade at 5.09 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 5.52 in 12 months time.