The signal from the central bank is that they won't increase the size of rate cuts. |
There has been an improvement in the country's fundamentals and a reduction in external vulnerability. That's allowing the government to lengthen debt maturities at smaller premiums. |
We also have Brazil's strong trade surplus, and the reduction in the central bank offering of currency swap contracts, and they are all combining to push up the currency. |
Without a doubt the investments flows into Brazil by foreign investors are bolstering the real. |