Brazilian Real Faces Weakness Against Dollar on Fiscal Risks: Rabobank
Rabobank analysts argue fiscal risks point to a weaker Brazilian real versus the US dollar, while softer US inflation and cooling labor data give the Fed more time to assess policy.
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Rabobank’s Mauricio Une and Renan Alves flag domestic fiscal risks as a key headwind for the Brazilian real against the US dollar.
They also highlight softer US inflation and cooling labor market data, which they say provide the Federal Reserve with more time to evaluate policy.
The combination leaves the real exposed to weakness against the dollar even as US data softens, according to the analysts.
Source: FXStreet Forex News