The Brazilian real was trading around 5.5 per USD, its highest since October 18th, amid a softer dollar and after the central bank announced its sixth interest rate hike in 2021 and the biggest in almost two decades, raising the Selic rate by 150 basis points to 7.75%. Still, concerns over the country's fiscal outlook and the pace of economic recovery alongside political woes continued to weigh on the currency's appeal.
Historically, the Brazilian Real reached an all time high of 5.99 in May of 2020. Brazilian Real - data, forecasts, historical chart - was last updated on October of 2021.
The Brazilian Real is expected to trade at 5.73 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 5.98 in 12 months time.