Breaking News
Investing Pro 0
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started

Brazil real extends rally, seals longest winning streak this year

Published May 26, 2020 04:42PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
9/9 © Reuters. Traders wearing masks watch as the Opening Bell rings, on the first day of in-person trading since the closure during the outbreak of the coronavirus disease (COVID-19) on the floor at the NYSE in New York 2/9
 
BRBY
+2.48%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Jamie McGeever

BRASILIA (Reuters) - Brazil's real rose for the fifth day in a row on Tuesday, sealing its longest winning streak against the dollar this year as buoyant global markets and ebbing of domestic political tensions added fuel to the rally.

The real's near 2% jump brought its gains since the start of last week to around 10%, and a dollar fall below 5.00 reais now seems more likely than a pierce up through 6.00 reais, traders said.

"There's still a lot of room for recovery. 5.00 (reais) is still high for the dollar," said Cleber Alessie Machado, broker at Commcor DTVM in Sao Paulo.

"If the political situation cools and impeachment is taken completely out of the question... yes, we could go back to 5.00 and below," he said, noting growing optimism that a global economic recovery could soon start as the world emerges from coronavirus lockdown.

Pressure on President Jair Bolsonaro built up this month due to his alleged role in changing senior federal police officials amid investigations of members of his political clan.

The real traded as high as 5.3350 per dollar (BRBY) and continued its close correlation with local interest rates. A flattening curve between short- and long-term rates is a sign of improving investor sentiment and easier financial conditions.

(GRAPHIC - Brazil FX and rates futures: https://fingfx.thomsonreuters.com/gfx/mkt/yzdvxdddmvx/BRAZILFXRATES.png)

This follows central bank president Roberto Campos Neto's reaffirmation last week that the bank stands ready to dip into its large pool of foreign exchange reserves and continue intervening in the market if needed.

That helped defuse some of the gloom surrounding the real and punctured the consensus view that a fall through 6.00 per dollar was inevitable.

"The real was very unloved (but) ran out of dollar buyers at 5.95. It was a bit too extended," said a hedge fund manager in Sao Paulo.

 

Brazil real extends rally, seals longest winning streak this year
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email