Exchange rate: U.S. dollar not expected to return to previous levels – Brazil’s Economy Minister
RIO DE JANEIRO, BRAZIL – Economy Minister Paulo Guedes said on Tuesday that the exchange rate has experienced what he classifies as “overshooting” and that the dollar rate, currently around R$5.00, should not return to its previous R$5.60-R$5.80 high levels. “The exchange rate is also calming down, because we have indeed observed what we classify as overshooting.”
“The exchange rate was at R$5.80, R$5.60, and has now recovered to R$5.00. The exchange rate will most likely not rise this high again,” said Guedes, in English, at an event promoted by Bradesco BBI.
The spot dollar closed Monday’s trading session with a positive variation of 0.03%, at R$5.038 on sale. So far in 2021, the U.S. currency has accumulated a drop of approximately 2.9% against the Brazilian Real.
“Overshooting” designates a currency that is more devalued than suggested by the economic fundamentals.
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