Brazilian Real Higher After Interest Rate Cut

Brazilian Real Higher After Interest Rate Cut

The Brazilian real rallied against the US dollar yesterday after the Federal Reserve released a dovish policy statement and Brazil’s central bank cut its key interest rate.

The Central Bank of Brazil cut the Selic rate by one percentage point to 9.25%, in line with expectations. It was the first time since November 2013 when the interest rate was set below 10%. Moreover, the central bank signaled that it may continue monetary easing at the same pace at the next policy meeting.

USD/BRL sank 1.07% to 3.1384 as of 11:30 GMT today.

This post was originally published by EarnForex

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Vladimir Vyun

Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to EarnForex.com. His main specialization is the fundamental situation in EUR/USD, the currencies of emerging economies and inter-market correlations with commodity and bond trading.