Real feels effects of low risk appetite
The global economic recovery seems to be teetering back and forth between optimism and pessimism. Lately, investors have been more pessimistic about economic recovery, leading to the dodging of riskier emerging-market assets. As a result, Brazil's real has slid to its lowest exchange rate in more than two weeks.
The real has dropped for a fourth straight day and even touched its weakest exchange rate since May 29 against the US dollar. Though the news is negative, there are positives the Brazilian currency has encountered this year. In 2009 it is up 17% against the dollar, which is the second best among the top 16 most traded currencies.
Because of increased risk aversion, the real's exchange rate is currently at GBP0.308 and EUR0.362.
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The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.