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Local Markets Closed, BRL Longest Losing-Streak Since 2014

BRAZIL
  • BRl Local Markets Will Be Closed For Holiday Today.
  • BRL extended losses into an eighth straight session yesterday - its longest losing streak since January 2014 - as the broader risk-off mood exacerbated worries over corruption scandals threatening political stability in the country.
  • Additionally, data on Thursday showed Brazilian inflation in June hit a near five-year high, despite coming in slightly below expectations.
  • The weakness in the Real prompted some action from the central bank. The BCB sold USD 500 million of swaps (announcement made when spot was above 5.30). This is the first intervention since the week of March 10-15 where spot was nearing 5.80.
  • Brazilian President Jair Bolsonaro's disapproval ratings rose to the highest level since he came to power 2-1/2 years ago, with the far-right leader also slipping further behind his main rival ahead of the election in 2022, two polls showed on Thursday.
    • According to a Datafolha poll, 51% of Brazilians disapproved of Bolsonaro, up from 45% in the previous poll in May and the highest since he took office in January 2019. (NP)

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