The Brazilian real fell to a record in three years :: Finance :: RBC

The Brazilian real fell to a minimum over the last three years. At the close of stock trading for one dollar offered almost 4.21 real

Photo: Ricardo Moraes / Reuters

The Brazilian real fell to its lowest level over the past three years. At the end of trading for the American dollar was worth 4,2075 real, follows from the data Bloomberg.

According to Brazilian TV channel Globo, trades in the Brazilian real closed at 4,14. Thus, the channel says, the currency fell against the dollar for more than 1.1%.

The previous low real showed 24 September 2015, when in the course of trading, the dollar rose to 4,248 real, but to the closure of the Brazilian currency managed to regain part of the fall. The auction then closed at 4.12 real per dollar.

According to Reuters, the fall of the real has happened in particular due to internal factors — presidential elections in the country, which should take place on 7 October. One of the leaders of the race is Air Bolsonaro from the Social liberal party, who was assassinated in early September. In the night of Thursday, September 13, he had another operation. In the result, there are fears that he may not recover by the beginning of the elections and not to conduct the campaign. Also according to Reuters, the Brazilian real fell due to the emergence of weaker-than-expected rise in inflation in the United States. About such reasons and Globo respondents say analysts.

Of the currencies of developing countries on Thursday rose Turkish Lira. The Central Bank of the country, ignoring the statements of President Recep Tayyip Erdogan, raised its key interest rate to 24% from 17.75%. Also in relation to the dollar and the Euro strengthened Russian rouble. Interviewed by RBC analysts said that the growth factors of the Russian currency was the completion of sales of Russian assets, such as OFZs and shares, where the share of non-residents is high. Influenced also the decision of the Central Bank of Turkey, as well as the meeting of the Senate banking Committee of the U.S. Congress. While it has been raised the most serious possible sanctions against Russia, as the limitation of payments in dollars.

According to Japanese investment Bank Nomura, Brazil is a country with zero risk of a currency crisis. Such estimates analysts have made based on our own index of the “early warning” of possible currency crises. Through this index they rank 30 emerging markets according to the proximity to various monetary disasters. The greatest risk of crises we can expect in Sri Lanka, Argentina and Turkey crisis has already covered, and in South Africa, Pakistan, Egypt and in Ukraine, it can happen in the next 12 months, I believe in Nomura.

Leave a Reply

Your email address will not be published. Required fields are marked *