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USDBRL Closes below 4.60, Fresh Two-Year Lows

BRAZIL
  • Investors continued to flock to the Brazilian Real on Monday prompting another 1% advance against the greenback and marking a near 18% rally in 2022. The currency remains buoyed from a fresh bounce in the commodity complex, attractive carry and an additional tailwind related to the the geographical proximity to the ongoing Ukraine conflict.
    • As technical conditions continue to deteriorate for USDBRL, attention should be drawn to 4.50 psychological mark before the 2019 highs, residing at 4.2770 as more significant medium-term support.
  • The Brazilian government’s pick to run Petrobras withdrew from the role, risking a power vacuum at Latin America’s biggest oil producer that has become the center of a political dispute over fuel prices.
    • Adriano Pires declined the invite Monday, Energy Minister said in a statement, adding that the decision was taken by personal reasons.
    • “It seems that they are running out of more technical names, and an internal candidate may be an option,” said Marcelo de Assis, an analyst at consultant Wood Mackenzie.
    • Caio Paes de Andrade, an advisor to Minister Paulo Guedes, is one of the names quoted to assume the presidency of Petrobras following the resignation of Adriano Pires. (Globo)

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