Brazil Real Tumbles to Near-Record Low Despite Central Bank Signal

The real’s decoupling from interest rates suggested speculative flows were behind the currency’s slide, given that the rise in interest rate futures was widespread.

RIO DE JANEIRO, BRAZIL - (REUTERS) Brazil’s real slumped on Thursday to within sight of its all-time low against the dollar, despite the central bank’s signal a day earlier that its latest interest rate cut could be its last, and a broad rise in market-based interest rates.

The real’s decoupling from rates suggested speculative flows were behind the currency’s slide, given that the rise in interest rate futures was widespread and on strong volume as traders unwound bets on further monetary easing from the central bank.

The bank’s rate-setting committee known as Copom . . .

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