Tuesday, 22 November 2011

Global Economy Unfavorable for Riskier Currencies, Brazilian Real Drops

The Brazilian real ticked down because the developments within the international economy created investors favor safer assets over riskier ones.

The US politician weren’t been ready to agree on budget cuts. Germany’s Finance Ministry admitted that the nation’s economic growth was “noticeably slower”. All in all, it remains terribly arduous to convince investors to shop for riskier currencies, even with guarantees of upper yield.

Unfortunately for Brazil and its currency, the foreign issues have impact on the country’s economy. Analysts slash their forecasts for the Brazilian economic growth. There’s the speculation that Brazil’s government could cut its estimate for growth to three.5 % when it reduced the outlook to three.8 % on November eighteen.

USD/BRL was up today from 1.8077 to 1.8084 as of 8:30 GMT after falling to the intraday low of 1.8035.

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