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USDBRL Slides Below 4.9500 Amid Bolstered Risk Sentiment

BRAZIL
  • As broadly expected, the Brazilian real has opened up on a positive note on Tuesday, in line with the bolstered risk sentiment and outperformance for EM peers such as the South African rand. USDBRL (-0.70%) is now trading at the lowest level since last Monday, back below 4.9500. Similar optimism being felt across the DI swaps curve, with the majority of the curve shifting between 9-10bps lower, retracing the moves seen on Monday.
  • Headlines continue to filter through from president Lula, stating that BRICS cannot be a closed group like the G7 and signalling the belief he does not think the IMF is helping Argentina. As noted, tax collections data and comments from BCB’s Campos Neto and Galipolo are highlights for the local docket on Tuesday.

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