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USDBRL Lowest Close Since July 2021, Extends Fall Below 5.02

BRAZIL
  • The Brazilian Real continues to trade on the front foot, gaining close to another 1% on Tuesday against the greenback. Immediate sights are on 5.0416, the Jul 29 low ahead of the 5.00 handle and the 2021 lows at 4.8934.
  • Brazil’s government is mulling measures to stimulate the economy, said Economy Ministry’s Special Adviser for Strategic Affairs, Adolfo Sachsida, in an online presser. (BBG)
    • Proposals include changes to FGTS fund rules.
    • There will be no changes in 2022 fiscal target to attend the new program.
    • Government to revise 2022 GDP forecast in mid-March.
    • Government infrastructure investments this year to reach 78b reais.
  • Further data scheduled:
    • 1230GMT/0730ET: Jan. Foreign Direct Investment, est. $3.5b, prior -$3.94b
    • 1230GMT/0730ET: Jan. Current Account Balance, est. -$7.8b, prior -$5.89b
    • 1730GMT/1230ET: Jan. Federal Debt Total, prior 5.61t

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