Created
: 2024.09.02
2024.09.02 21:01
Brazil's central bank, BACEN, intervened on Friday to support the real, ING's FX strategist Chris Turner notes.
"BACEN said the move was to offset pressure on the real due to the rebalancing of the MSCI equity index which takes place today."
"Yet the real was also under pressure after Friday saw the July primary budget deficit come in three times higher than expected. The news comes at a bad time for the Brazilian government as it remains under pressure to deliver fiscal consolidation into 2025."
"The market is now pricing a 25bp Brazil rate hike for 18 September - the day that the Fed is expected to cut. That may help stabilise the real, but we remain concerned that with high levels of floating rate date, Brazil's challenge to roll its debt at 12% per annum rates will keep the real on the back foot."
Created
: 2024.09.02
Last updated
: 2024.09.02
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy