Stars Align for Brazil’s Real to Outshine Mexican Peso in 2021

The Mexican currency has outperformed its Brazilian counterpart for four straight years. That dynamic may finally be about to change.

RIO DE JANEIRO, BRAZIL - Booming commodities, rock-bottom valuations and a hawkish turn at central bank are all poised to support the Brazilian real. But it’s politicians who hold the key to turning that into a long-term rally.

“Rates moving in different directions might not be enough by itself,” said Brendan McKenna, an foreign-exchange strategist at Wells Fargo in New York. “Brazil needs to shore up its fiscal position and make progress on the reform agenda for the real to gather longer-term momentum.”

After a year of splashing out on social programs during the pandemic, Brazil . . .

To read the full NEWS and much more, Subscribe to our Premium Membership Plan. Already Subscribed?