Real forecast to surge
Standard Chartered Plc, the firm that forecast the recent rally in the Brazilian currency, has predicted that the real will gain a further 18% by the end of 2010 as commodity exports and internal growth will keep the currency strong. The real has gained 27% against the US dollar this year already.
In addition to commodity exports, Brazil also exports coffee, sugar and juice which has contributed to the trade surplus expanding by 16% between January and July. Growing trade between Brazil and China is also supporting the real's gains.
Exchange rates for the Brazilian real were little changed against the US dollar today, currently valued at 1.84 per US dollar and 3.04 per British pound.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.