The Brazilian real appreciated as much as 0.5% to 5.1 per USD on Friday, its highest level since mid-December of 2020 and extending gains for a seventh straight session, as the dollar fell after US non-farm payrolls data disappointed, tempering expectations the Federal Reserve will tighten monetary policy sooner, rather than later. The real has also been supported by upbeat domestic growth numbers and steep interest rate hikes. Meanwhile, the currency's medium-term prospects are still obscured by investor worries about the pace of reforms as pandemic relief and social spending become the center of debate before the 2022 presidential vote. Brazil's lower house speaker said last week Congress was not in a position to rush through tax reforms, as that has been so long in the making that it was worth taking a few months more to get it right.
Historically, the Brazilian Real reached an all time high of 770.43 in September of 2020. Brazilian Real - data, forecasts, historical chart - was last updated on June of 2021.
The Brazilian Real is expected to trade at 5.13 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 5.29 in 12 months time.