Brazil Central Bank Intervenes to Ease Rally

The central bank of Brazil bought dollars in the forex spot market today in order to hold down the soaring value of the real, the Brazilian currency. So far this year, the real has appreciated by 8.5 percent, placing pressure on exporters.

Economists attribute the rise of the Brazilian real to the inflow of capital. Oversees debt markets were tapped by Brazilian companies to the tune of 14 Billion USD this year. Other thriving South American economies, such as Colombia, have similarly appreciating currencies and face the same choices as Brazil regarding intervening in the currency markets.

Source: Bloomberg

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Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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