Brazilian real firms as Lula calms markets

By late last week, the currency had strengthened to trade above 3.30 reais per dollar for the first time since September. The currency had started the year trading at around 3.55 per dollar.

"There is a generally positive sentiment, and Lula is being given the benefit of the doubt," said Clyde Wardle, Latin America FX strategist at HSBC in New York. "Markets believe he can maintain tight fiscal discipline." But Wardle added that Lula was being given a "honeymoon period" by dealers.

Invest

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Week account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: