![]() The USD/BRL forex pair refers to the exchange rate for the US dollar – the base currency – against the Brazilian real – the quote currency. In this article, we look at the real’s performance against the US dollar and the latest USD/BRL forecast from analysts. What has driven the volatility, and what is the outlook for the foreign exchange ( forex FX) pair for the rest of the year? The Brazilian central bank left its key interest rate unchanged at 13.75% on 21 September 2022, while the US Federal Reserve ( Fed) raised its headline rate by a further 75 basis points (bps) on 3 November, lifting it to the highest level since early 2008. ![]() In September, the USD/BRL pair bounced around as currency traders evaluated the dollar’s strength against high Brazilian interest rates and an approaching presidential election in October.įollowing the election of Luiz Inácio Lula da Silva as the next president of Brazil in a tight run-off race against incumbent president Jair Bolsonaro, the real has gained value against the dollar, gaining close to 5% over the past week and trading at 5.03 as of 4 November. The real gained some value in August, returning to its June levels. The Brazilian real ( BRL) has been highly volatile against the US dollar ( USD) so far in 2022, shifting from being one of the top performers against the greenback earlier in the year to a sell-off in July that made it one of the biggest underperformers among emerging market currencies. How will Brazil’s real perform amid political headwinds? – Photo: rafastockbr /
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