Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Economy

Brazil’s real seen more stable; to trade close to 6 per U.S. dollar at end-2025: Reuters poll

admin by admin
January 9, 2025
in Economy
0
Brazil’s real seen more stable; to trade close to 6 per U.S. dollar at end-2025: Reuters poll
0
SHARES
7
VIEWS
Share on FacebookShare on Twitter

By Gabriel Burin

BUENOS AIRES (Reuters) – Brazil’s real currency is forecast to trade slightly stronger, at around 6 per U.S. dollar at the end of 2025 following a punishing year of losses, a Reuters poll of foreign exchange analysts showed.

The real fell around 22% in 2024, mainly due to investor disappointment about a fiscal package introduced by President Luiz Inacio Lula da Silva’s economic team to correct worrying debt trends.

Losses in Brazilian assets only stopped after Brazil’s central bank sold nearly 10% of its reserves throughout the last three weeks of 2024. The real has now stabilized following last month’s meltdown to a record low.

But like many other emerging market currencies, there is little prospect for making much positive headway this year so long as the U.S. retains its dominance in currency market bets. 

The currency is expected to trade at 5.94 per dollar in one year, 2.7% stronger than its closing value of 6.10 on Tuesday, according to the median estimate of 25 analysts polled Jan. 3-8.

“Pressure on the real was exacerbated by the market’s negative perception of progress of the government’s spending cut package in Congress,” analysts at Sicredi wrote in a report.

“Despite the (central bank) intervention, unfavorable dynamics for the Brazilian currency continue to be a significant challenge.”

In December, Banco Central do Brasil (BCB) sold $22 billion of its reserves in spot foreign exchange markets and another $11 billion through repurchase agreements. It has not intervened again in the first days of 2025.

“Higher yields in the U.S. and the perception of greater fiscal risk in Brazil should keep the currency at the new level (6 per dollar),” analysts at Banco Inter wrote in a report.

U.S. Treasury yields edged higher on Tuesday after data showed the U.S. economy remained resilient, supporting market expectations the Federal Reserve may have only one quarter-point interest rate cut left to deliver.

Latin American currency strategists are also waiting for what U.S. President-elect Donald Trump announces after his inauguration on Jan. 20, wary of any potential plan to apply sweeping tariffs that could hit the Mexican peso even further.

The currency fell nearly 19% in 2024 on tariff fears as well as concerns related to controversial judicial reforms.

The peso is forecast to trade at 20.90 per dollar in 12 months, or 2.8% weaker than its value of 20.31 on Tuesday.

(Other stories from the January Reuters foreign exchange poll)

(Reporting and polling by Gabriel Burin in Buenos Aires; additional polling by Indradip Ghosh and Mumal Rathore in Bengaluru; Editing by Alexandra Hudson (NYSE:HUD))

This post appeared first on investing.com

Previous Post

UK markets are in the eye of the global bond storm

Next Post

Morgan Stanley names Experian as “top pick” in European business services sector

admin

admin

Next Post
Morgan Stanley names Experian as “top pick” in European business services sector

Morgan Stanley names Experian as “top pick” in European business services sector

Trending News

Peloton stock more than doubles in 2 months: is the growth sustainable?

October 19, 2024
Top five LATAM news stories that made headlines in 2024: here’s a recap

Top five LATAM news stories that made headlines in 2024: here’s a recap

December 26, 2024
Supermicro can’t seem to pull itself together: here’s why it lost 12% again

Supermicro can’t seem to pull itself together: here’s why it lost 12% again

December 16, 2024
Subscribe to Insightful Word


    Recent News

    Vietnam firms to sign $2B deal for US agricultural products

    Vietnam firms to sign $2B deal for US agricultural products

    June 3, 2025
    Here’s why South Korea’s KOSPI Composite Index is soaring

    Here’s why South Korea’s KOSPI Composite Index is soaring

    June 3, 2025
    Asian markets close: Hong Kong leads gains, Nikkei flat; Sensex falls over 630 pts

    Asian markets close: Hong Kong leads gains, Nikkei flat; Sensex falls over 630 pts

    June 3, 2025
    US stocks unchanged on market open: S&P up 0.09%, Nasdaq up 0.19%

    US stocks unchanged on market open: S&P up 0.09%, Nasdaq up 0.19%

    June 3, 2025

    Recent News

    Vietnam firms to sign $2B deal for US agricultural products

    Vietnam firms to sign $2B deal for US agricultural products

    June 3, 2025
    Here’s why South Korea’s KOSPI Composite Index is soaring

    Here’s why South Korea’s KOSPI Composite Index is soaring

    June 3, 2025

    Latest News

    • Vietnam firms to sign $2B deal for US agricultural products
    • Here’s why South Korea’s KOSPI Composite Index is soaring
    • Asian markets close: Hong Kong leads gains, Nikkei flat; Sensex falls over 630 pts

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.