Brazilian real takes nosedive ahead of general election
The Brazilian real went into a lingering tailspin. Year to date, the currency has already lost 26.6%. The upcoming general election makes the situation even worse, heating up the market volatility. The political race is drawing to an end, so feelings are running high just like in Brazilian soap operas. The citizens of the country will elect the President, the District Governors and Vice Governors, as well as the Legislative Assemblies of Brazilian states. So, the cast of characters in this soap opera is large. The financial market will surely fall under influence of this dramatic race, so the Brazilian real faces a risk of dipping even lower. Time will show how this story will end. Uncertainty over the election results contributed to a fall in the exchange rate of the national currency against the US dollar. Furthermore, the latest events turned this humdrum serial into an action movie. The front runner in the election, Jair Bolsonaro from the Social Liberal Party, was badly wounded in an attack. Such an abrupt twist came quite unexpected. In addition to domestic problems, foreign events also put the real under pressure. Particularly, a sharp increase in the interest rate by the Turkish central bank had a profound effect on the Brazilian currency.
Published: 2018-09-24 10:07:37 UTC