Brazil’s Real Has Room to Run as Investors Look Past Election
- High interest rates seen driving demand for Brazilian assets
- Seemingly smooth presidential vote lifts traders’ confidence
A shopper counts real banknotes at a market in Sao Paulo, Brazil.
Photographer: Paulo Fridman/Bloomberg
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Brazil’s high interest rates and favorable economic outlook are fueling optimism on the currency as investors look past Sunday’s presidential election.
Wells Fargo says the real will outperform its Latin American peers, Goldman Sachs recommended clients buy the Brazil’s currency against the South African rand while BNP Paribas said it expects foreigners to pile into the country’s assets in coming months.