Even for those used to the Brazilian Real’s fluctuations, the past few weeks have trigged adrenaline surges.
Although the BRL was already on the road to recovery after the imbroglio of the Federal Budget ended, the recent Fed’s decision to keep monetary stimulus unchanged worked like a pendulum, exacerbating this movement.
As a result, we saw the BRL printing a strong appreciation (+5.21%) throughout April. As of writing, the currency is set to end the week almost 3% higher, exhibiting that started May on the right foot.
Looking ahead, the weakest levels notched early in March may not be seen again in the short-medium term, however, there are a number of fundamentals suggesting that the BRL will experience renewed losses in the long term.
Check out our full analysis, downloading our May Outlook Report.
Written By - Matheus Zani, LatAm Risk Consultant, and Account Manager
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