Economics
Brazil’s Real Gains Amid Optimism Over Temer’s Economic Measures
- Temer’s economic team pushing for at least $6 bln in new cuts
- Currency reversed earlier declines with positive expectations
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Brazil’s real rose for a second day amid speculation that Acting President Michel Temer’s government will be able to pull Latin America’s largest economy from its deepest recession in a century.
The real added 0.1 percent to 3.2498 per dollar on Tuesday after Temer met his economic team to discuss policies designed to revive economic growth without increasing government expenses. It declined as much as 1 percent earlier amid a slide in emerging-market currencies and an intervention by the Brazilian central bank. The monetary authority sold all 10,000 reverse currency swaps offered, equivalent to buying $500 million in the futures market, to limit gains in the real.