On 11 May, the Brazilian real (BRL) traded at 1.97 per USD, which was 7.1% weaker than the level registered on the same day the previous month. The drop followed April's 4.5% decline. In fact, the BRL's value against the U.S. dollar has now fallen to the lowest level observed since mid-2009. In annual terms, the real has lost 21.3% versus the USD. The weakening of the real can be partly associated with fading investors' appetite towards emerging market assets, as political turmoil in Europe fuels a flight to quality. In addition, commodity prices have moderated recently amid concerns of decelerating growth in China. Finally, the weakening of the Brazilian currency coincides with cuts in the SELIC rate in mid-April, which now sits only a notch above the historical low of 8.75%.
Brazil Exchange Rate
Brazilian real falls to lowest level in almost three years
May 11, 2012
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Brazil Economic News
October 19, 2016
At its 19 October meeting, the Central Bank’s Monetary Policy Committee (COPOM, Comite de Politica Monetaria) decided to cut the benchmark SELIC interest rate for the first time in four years, lowering it from 14.25% to 14.00%.
October 18, 2016
Retail sales (excluding cars and construction) fell 0.6% in August from the previous month in seasonally-adjusted terms.
October 7, 2016
Consumer prices in September increased 0.08% over the previous month, the lowest rise since July 2014.
October 4, 2016
In August, industrial production plunged 3.8% over the previous month in seasonally-adjusted terms, which significantly contrasted the 0.1% expansion recorded in July and marked the worst result since January 2012.
October 3, 2016
The Markit manufacturing Purchasing Managers’ Index (PMI) rose slightly in September, increasing from August’s 45.7 to 46.0.