The Brazilian real traded around 5.8 per USD, not far from 5.9 touched in the previous session, its lowest level since May 14th 2020, after a Supreme Court judge annulled the criminal convictions against former leftist President Luiz Inacio Lula da Silva and restored his political rights. The currency was already under pressure due to concerns over the pandemic situation and associated lockdown restrictions, alongside the country's fiscal sustainability. Meantime, the latest weekly "Focus" survey showed the average forecast for IPCA consumer price inflation at the end of this year rose for the ninth straight week to a new high of 4%. Also, the average end-2022 forecast for the central bank's benchmark Selic interest rate was raised to 5.50% from 5.00%, the highest since May last year.
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 March of 2021.
The Brazilian Real is expected to trade at 5.94 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 6.12 in 12 months time.