Development of the braziliain real

At the start of November, the Brazilian real was trading slightly below 5.60 per dollar, close to its
best level in over a week, as traders welcomed a more hawkish monetary policy stance discussed
in the central bank minutes, which included a weighing of more than 150 basis points.
Meanwhile, the forward guidance for the upcoming meeting in December remained unchanged
at 150 basis points. In addition, the Fed's decision arrived as expected, with the start of $15 billion
in monthly tapering, but no indication of when rates will be raised. Meanwhile, concerns over
Brazil's fiscal credibility and the pace of economic recovery, as well as political issues, have
continued weighing on the currency's appeal.

​Written by: Carolina Paixão and Lucas Scala
Edited by: Anna Kissajikian