Issue CXXX - Weekly Edition: September 7 - September 13, 2011
Dollar Climbs to R$1.70 Against the Real: Daily
September 13, 2011 | Filed underDaily Update | Posted by Contributing Reporter
By Brennan Stark, Contributing Reporter
RIO DE JANEIRO, BRAZIL – The U.S. dollar rose 1.78 percent against the Brazilian real according to Monday’s closing figures. The rise effectively leaves the dollar worth just over R$1.70, its highest level since December 2010, but still well below its five year high of R$2.50 in December 2008.
The dollar climbs to highest value against the real since December 2010, image by Yahoo Finance.
Although the U.S. economy continues to struggle, economic crises in Greece and Italy have diverted some to pull funds and investments and direct them at the less risky U.S. market.
“Everyone is very afraid of a Greek default,” Andre de Carvalho Ferreira, director of Nova Futura DTVM Ltda., a brokerage firm in Sao Paulo said in an interview with Bloomberg. “You never know what’s going to happen. There’s no upside to hold the real. There’s more to go.”
The last eight consecutive reports have indicated that the dollar has strengthened and, according to Abucater dos Santos, manager of foreign exchange at brokerage company ICAP Brasil, the dollar’s trend could continue to rise until it reached R$1.80.
One possible reason, dos Santos suggests, was early September’s cut in the basic interest rate in Brazil from 12.5 to twelve percent per year.
Dollar Climbs to R$1.70 Against the Real: Daily
September 13, 2011 | Filed underDaily Update | Posted by Contributing Reporter
By Brennan Stark, Contributing Reporter
RIO DE JANEIRO, BRAZIL – The U.S. dollar rose 1.78 percent against the Brazilian real according to Monday’s closing figures. The rise effectively leaves the dollar worth just over R$1.70, its highest level since December 2010, but still well below its five year high of R$2.50 in December 2008.
The dollar climbs to highest value against the real since December 2010, image by Yahoo Finance.
Although the U.S. economy continues to struggle, economic crises in Greece and Italy have diverted some to pull funds and investments and direct them at the less risky U.S. market.
“Everyone is very afraid of a Greek default,” Andre de Carvalho Ferreira, director of Nova Futura DTVM Ltda., a brokerage firm in Sao Paulo said in an interview with Bloomberg. “You never know what’s going to happen. There’s no upside to hold the real. There’s more to go.”
The last eight consecutive reports have indicated that the dollar has strengthened and, according to Abucater dos Santos, manager of foreign exchange at brokerage company ICAP Brasil, the dollar’s trend could continue to rise until it reached R$1.80.
One possible reason, dos Santos suggests, was early September’s cut in the basic interest rate in Brazil from 12.5 to twelve percent per year.
This is the beginning of the re-lineament of the Brazilian Real. The Brazilian economy is over heated, inflation is surging, property prices are out of hand, creating a bubble that Brazil is not prepared to deal with, let alone acknowledge that it exist. It seems Brazil hasn't learn a thing during the pass few years, while the world struggled to maintain economic sanity, Brazil was awash with fortuitous events; oil discovered off its coast, winning the posting of the World Cup and the 2016 Olympics. Greed is a terrible thing and it is in full swing in Brazil.
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