Analysis: Brazil interest rate shock to boost real, but for how long?

The signal from the U.S. Federal Reserve on Wednesday that it is in no rush to raise U.S. interest rates should also keep the dollar in check.

RIO DE JANEIRO, BRAZIL - Brazil’s real (R$) one of the world’s worst-performing currencies this year, is set to get a shot in the arm from the Central Bank’s stronger-than-expected interest rate hike on Wednesday, March 17th, and pledge of a second dose in May.

The bank’s aggressive start to its tightening cycle, coming on the heels of its recent burst of foreign exchange market interventions, will put a floor under the real in the near term, analysts say.

The signal from the U.S. Federal Open Market Committee on Wednesday that it is . . .

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