Brazil’s real at 5-month high on GDP data

RIO DE JANEIRO, BRAZIL – Brazil’s real rose more than 1% to lead Latin American currencies higher on Tuesday after data showed faster-than-expected economic growth. The real (R$) touched a five-month peak.

GDP expanded by 1.2% in the first quarter for the third consecutive quarter of growth, taking Latin America’s largest economy back to its size at the end of 2019 before the pandemic.

With Covid-19 cases surging and government expenditures at the risk of breaching a spending cap, investors have remained wary of Brazil markets. But rising commodity prices this year as economies reopen after coronavirus curbs have helped improve sentiment.

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