Political Risk Latin America Blog @PolRiskLatam

BRL/USD: through the roof

Posted in News and Articles, Political Risk by politicalrisklatam on April 7, 2011

by Jonathan Wheatley for Financial Times – Beyond Brics, April 7th, 2011.

The Brazilian real broke through the barrier of R$1.60 to the US dollar on Thursday, in spite of measures announced by finance minister Guido Mantega on Wednesday evening to slow its advance.

As one trader commented, “Mantega’s latest attempt completely backfires”. But the trader also noted that the strong currency is becoming another tool to tame inflation. Has Brazil changed sides in the currency war?

 

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