Brazilian Real Declines on Economic Outlook

After touching a one-year high versus the greenback this week, the Brazilian currency declined in a corrective movement, as speculations suggested that the wealthiest economy in South America may not provide support for extensions in the current real’s rally.

Even after posting a report indicating growth for the last quarter in Brazil, the real did not manage to extend its gains after touching a one-year high previously this week, as corrective movements and speculations regarding the future of the Brazilian economy weighed on the real’s outlook, which lost more than 1 percent versus the greenback towards the end of this week’s session.