Brazilian Real Lowest in 5 Months: Daily

By Brennan Stark, Contributing Reporter

RIO DE JANEIRO, BRAZIL – The real fell for the third straight day, its lowest in five months, after the Central Bank’s decision to slash the interest rate to twelve percent on August 31st. Fears that the global economy may suffer another recession tempered demands for higher-yielding assets, further causing the real to depreciate 0.3 percent to 1.6452 per U.S. dollar on Monday.

Brazilian Real Falls to Lowest Level in Five Months, Brazil News

Brazilian Real Falls to Lowest Level in Five Months, chart by Yahoo Finance.

Marcelo Fonseca, an economist with M. Safra & Co. in São Paulo, claimed that desires to cut borrowing costs by leveling interest rates will remain strong with the Central Bank as long as there are still fears about a looming debt crisis.

São Paulo based Bovespa, the benchmark Brazilian Stock Exchange, also fell early Monday, according to O Globo. Following the real’s decline and amidst ongoing anxieties of the public debt in Europe, the Bovespa Index closed down 2.71 percent at 54,998 points.

Read more (in Portuguese).

* The Rio Times Daily Update is a new feature we are offering to help keep you up-to-date with the major news as it happens.

2 Responses to "Brazilian Real Lowest in 5 Months: Daily"

  1. Pingback: Dollar Climbs to R$1.70 Against the Real | The Rio Times I Brazil News

  2. Pingback: Embraer Under Investigation by the US | The Rio Times | Brazil News

Leave a Reply

Your email address will not be published.