30 Mar 2016
Brazilian real is the best performer, rallying almost 9% year-to-date - Rabobank
Piotr Matys, EM FX Strategist at Rabobank, suggests that the severely battered EM currencies continue to benefit from a weaker the US dollar.
Key Quotes
“The Brazilian real, the worst performing currency in the world last year, is the best performer rallying almost 9% year-to-date. It is not only about soft greenback, but the real is also benefiting from growing market expectations that President Dilma Rousseff could be forced to resign amid growing political pressure fueled by massive protests across the country.
A fresh blow to her already weak position on the political scene came from the Brazilian Democratic Movement Party (PMDB), which decided on Tuesday to leave the government coalition. Leaders of the largest remaining partner in the alliance – the Progressive Party – are scheduled to meet today to discuss their options and perhaps abandon Rousseff who faces a crucial impeachment vote in Congress.”
Key Quotes
“The Brazilian real, the worst performing currency in the world last year, is the best performer rallying almost 9% year-to-date. It is not only about soft greenback, but the real is also benefiting from growing market expectations that President Dilma Rousseff could be forced to resign amid growing political pressure fueled by massive protests across the country.
A fresh blow to her already weak position on the political scene came from the Brazilian Democratic Movement Party (PMDB), which decided on Tuesday to leave the government coalition. Leaders of the largest remaining partner in the alliance – the Progressive Party – are scheduled to meet today to discuss their options and perhaps abandon Rousseff who faces a crucial impeachment vote in Congress.”