Brazil's real was trading around 5.3 per USD in late September, remaining well above a 3-month low of 5.5 touched in August as Brazil's central bank raised the Selic rate by 100bps for the second time in a raw and signaled another rate hike by the same magnitude in the next meeting as it seeks to control inflation that surged to 10% in August. At the same time, the dollar index was boosted after the US Federal Reserve maintained rates unchanged and signaled it could begin scaling back asset purchases as soon as November. On the political front, concerns are mounting that President Bolsonaro might pursue populist measures harmful for the economy, given its weakened position ahead of elections next year.
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 September of 2021.
The Brazilian Real is expected to trade at 5.41 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 5.64 in 12 months time.