Stars Align for Brazil’s Real to Outshine Mexican Peso in 2021
- Real has underperformed the peso for four years in a row
- Brazil’s key rate will probably exceed Mexico’s by September
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The Mexican currency has outperformed its Brazilian counterpart for four straight years. Yet that dynamic may finally be about to change.
Booming commodities, rock-bottom valuations and a hawkish turn at the central bank are poised to support the Brazilian real. But it’s politicians who hold the key to transforming that into a long-term rally.