The Brazilian Real Fell to a Minimum During Last Three Years
OREANDA-NEWS The Brazilian real has reached its lowest level in the last three years. In late trading, the greenback was worth 4,2075 real, follows from the data Bloomberg.
According to the Brazilian TV channel Globo, the Brazilian Real closed at around 4.14. Thus, the channel notes, the exchange rate fell against the dollar for the day by more than 1.1%.
The previous low of the real showed September 24, 2015, when the dollar rose to 4,248 Real, but by the close of the Brazilian currency was able to win back part of the fall. Trading then closed at 4.12 Real per dollar.
According to Reuters, the fall of the Real took place in particular due to internal factors-the presidential elections, which are to be held on October 7. One of the leaders of the race is Air Bolsonaro from the Social liberal party, who was assassinated in early September. On the night of Thursday, September 13, he had another operation. As a result, there are fears that he may not recover by the time the elections begin and that it may not campaign. Also, according to Reuters, the Brazilian Real fell due to the appearance of weaker than expected inflation in the United States. About such reasons Globo respondents say analysts.
Turkish Lira rose from the currencies of developing countries on Thursday. The Central Bank of this country, ignoring the statements of President Recep Tayyip Erdogan, raised the key rate to 24 from 17.75%. The Russian Ruble also strengthened against the dollar and the Euro.
Analysts surveyed by RBC said that the factors of growth of the Russian currency was the end of sales of Russian assets, such as Sberbank shares, where the share of non — residents is high. The decision of the Central Bank of Turkey, as well as the meeting of the banking Committee of the US Senate also had an impact. During it, the most serious possible sanctions measures against Russia, such as the restriction of payments in dollars, were not raised.
According to the Japanese investment Bank Nomura, Brazil is one of the countries with zero risk of currency crisis. Such assessments were made by the Bank's analysts on the basis of its own "early warning" index on possible currency crises. Within the framework of this index, they rank 30 emerging markets according to the degree of proximity to various currency cataclysms. The greatest risk of crises is to be expected in Sri Lanka. Argentina and Turkey have already been hit by the crisis, and in South Africa, Pakistan, Egypt and Ukraine it may occur in the next 12 months.
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