Brazil Real Surges on Rate Hike; Bulls Reach Pre-Lehman Levels
Brazil’s real is on the rise in trading today, as the country became the first in Latin America to raise rates coming out of the Great Recession. In a unanimous decision, the country’s central bank — Banco Central do Brasil — chose to raise rates by 75 basis points to 9.50 percent. Following the decision,… Continue Reading
Scotia Capital: Real to Fall 8% Against US Dollar; Ruble to Appreciate
The Brazilian real will sink against its US counterpart, as the inflation picture worsens alongside accelerated government spending, according to Scotia Capital. Oscar Sanchez, Latin America economist at the firm, expects the real to plunge 8 percent to 1.90 per US dollar. Mr. Sanchez said, “The government has been pumping money into the economy when… Continue Reading
Asian Currencies Fall on Intervention Fears
Bloomberg is reporting that Asian currencies are heading lower as intervention fears are on the rise: Asian currencies retreated from a 19-month high, led by South Korea’s won and the Taiwan dollar, on speculation central banks will seek to limit appreciation that may hurt exports. The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10… Continue Reading
Goldman Sachs: Buy Overpriced BRIC Currencies
Bloomberg is reporting that Goldman Sachs is bullish on BRIC (Brazil, Russia, India, China) currencies despite Goldman’s proprietary models indicating that these currencies are overvalued: The currencies of Brazil, Russia, India and China are poised to gain even as a model of long-term value suggests they’re too strong, according to Goldman Sachs Group Inc. While… Continue Reading
