The Brazilian real appreciates on Friday amid a general improvement in Latin American markets, rebounding from a volatile week. While it touched the key psychological level of 5 reais per dollar during the week, it currently stands at 4.96. There were no interventions made by the Central Bank, according to most analysts.
The dollar fails to breach this key barrier in a week with no major economic developments in Brazil. Political conflict with Paraguay regarding energy purchases from the Itaipu dam and higher-than-expected inflation figures were the week’s points of discussion.
Brazil, and Latin America in general, continue to be affected by the lackluster performance of other emerging countries like China, Brazil’s main trading partner, Argentina, and Paraguay.
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