Brazil: Brazilian real strengthens in October
October 31, 2011
On 31 October, the Brazilian real (BRL) traded at 1.69 per USD, which represented a 9.8% nominal appreciation compared with the previous month as well as a partial recuperation from last month's drop in the currency's value, which had marked the biggest loss since September 2008. On a year-on-year basis, the real appreciated 0.8% versus the USD. October's appreciation of the real followed a similar pattern in other emerging market currencies. Brazil's economic fundamentals remain supportive for the BRL, in particular the high interest rate differentials in relation with developed countries as well as a strong international reserve position (Q3: USD 350 billion or equivalent to 17 months of imports). Moreover, a positive trend in global commodity prices also helped to contribute to the real's appreciation throughout October.