The real hit a 19-month low against the dollar, can it affect Uruguay?

The real hit a 19-month low against the dollar, can it affect Uruguay?
The real hit a 19-month low against the dollar, can it affect Uruguay?

Brazil’s currency fell to November 2022 values ​​and its depreciation could affect the behavior of the peso.

He real hit its lowest level in 19 months this Wednesday against the dollar and could affect the local exchange market, because the behavior of the currency Brazil usually impacts the Uruguayan Peso.

The Brazilian currency fell to 5.5261 reais per dollar, a value that it reaches for the first time since mid-November 2022, at a time of widespread appreciation of the US currency internationally.

The fall of the real also occurred after the publication of the price index IPCA, which prefigures the data inflation, and stood at 0.39% monthly in June, below what economists expected (0.45%).

This information could influence the Central Bank of Brazil (BCB), which last week maintained its rates in the face of a rise in inflation, a decision that earned the president of that country some criticism, Lula da Silva.

What happens with the dollar in Uruguay?

In parallel, the dollar rose this Wednesday in the local exchange market, bouncing to near its highest level in more than six months and ending two consecutive days of decline.

In this way, the greenback accumulates an improvement of 1.98% so far this month, while its appreciation compared to the end of 2023 reaches 1.38%.

The CPA Ferrere economist, Giuliano Cantisani, anticipated weeks ago to Ámbito the impact that the real can have at the local level, since “it is usually a reference for the Uruguayan peso.”

Something similar had been raised to this medium Alan Babic, financial advisor Balanz Uruguay, who considered that the exchange rate in Uruguay is linked to “competitiveness in Brazil”. In this way, if the real continues with its downward trend, we will have to be attentive to the next movements of the Uruguayan peso.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts