Currency Crisis: Argentine Peso Surpasses Brazilian Real as Brazil Faces Worst Currency Performance in 2024; Country Confronts Economic Challenges

Written by Alisson Ficher

Published on 18/06/2024 at 03:34

Seja o primeiro a reagir!

On Monday (17), the Argentine peso surpassed the Brazilian real around 4 PM, placing Brazil in the position of the worst currency performance among emerging countries this year.

By 4 PM, the dollar had accumulated a 10.54% appreciation against the real in 2024. Later, however, there was a reduction in the difference against the Argentine peso, with both countries showing a drop of 10.48% in their currencies for the year.

According to information from the site Infomoney, the dollar appreciated against the real today, despite having fallen in other global markets.

The DXY index, which evaluates the strength of the dollar against other developed currencies, fell by about 0.2%. The day was marked by lower global risk aversion, reflected by the rise in U.S. stock markets.

ARTICLE CONTINUES BELOW

The Influence of Interest Rates in the U.S. on the Weakening of the Real

Experts consulted by the mentioned portal say that higher interest rates in the United States have been crucial for the depreciation of the real.

The heated American economy led the Federal Reserve to maintain high rates, attracting investments and strengthening the dollar. This has negatively impacted the real, with resources being directed to the American market.

According to Felipe Pontes, director of Avantgarde Asset Management, in an interview with Infomoney, “American interest rates are seen as the global benchmark free of risk.”

“Currently, the U.S. has rates around 5.5%, while in Brazil they are at 10.5%, resulting in a historically low spread of 5 percentage points, encouraging capital flight,” he said.

Internal Impacts on the Real

Internally, the increase in the so-called “Brazil risk” has contributed to the continuous depreciation of the real. Misaligned fiscal issues and political uncertainties have heightened fears regarding the country’s economic stability, negatively affecting the flow of foreign investments.

In this regard, also to the mentioned portal, Rafael Perretti, economist at Clear Corretora, notes that “since February, Brazil risk has been rising, reflected in the CDS, which is at its highest level of the year. The fiscal and inflationary disorganization has contributed to this.”

What Are the Forecasts and Perspectives for the Future

The market has indicated a possible acceleration of inflation in Brazil, driven by fiscal and external factors such as weather conditions.

Recently, the Focus Bulletin revised its projections for inflation in 2024 upwards. This may affect the Brazilian “real interest rate,” decreasing the attractiveness of investments in the country compared to American securities.

Another factor beyond those mentioned is the recent decline in commodity prices, such as oil and iron ore. Such events, according to experts, have contributed to downward pressure on the real. The reduction in international prices negatively impacts Brazil’s trade balance, adding more challenges to the currency’s stability.

On the other hand, in Argentina, the recent changes in economic policies indicate a gradual recovery, influencing the relative approach between the real and the Argentine peso.

0 Comentários

Mais recente

Mais antigos Mais votado

Feedbacks

Visualizar todos comentários

Currency	Country of Origin	YTD%
USDBRL	Brazil	-10.54
USDARS	Argentina	-10.485
USDTRY	Turkey	-10.12
USDMXN	Mexico	-8.502
USDTHB	Thailand	-6.956
USDKRW	South Korea	-6.521
USDIDR	Indonesia	-5.676
USDCOP	Colombia	-4.876
USDCLP	Chile	-5.738
USDHUF	Hungary	-5.776

Currency Crisis: Argentine Peso Surpasses Brazilian Real as Brazil Faces Worst Currency Performance in 2024; Country Confronts Economic Challenges

On Monday (17), the Argentine peso surpassed the Brazilian real around 4 PM, placing Brazil in the position of the worst currency performance among emerging countries this year.

The Influence of Interest Rates in the U.S. on the Weakening of the Real

Internal Impacts on the Real

What Are the Forecasts and Perspectives for the Future

A giant half-ton ring fell in Kenya from space, and more than a year later, scientists still do not know where it came from.

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

In Botswana, a salt flat of up to 16,000 km² that was once an African megalake spends months as an absolute white desert, but during the rainy season it transforms into a shallow sea that reappears from nowhere and can be seen from space in the middle of southern Africa.

Bavarian archaeologists unearthed a medieval skeleton that had an articulated iron hand in place of its left arm, and the discovery reveals that doctors were already creating sophisticated prosthetics over 500 years ago.

Cell phones in schools: learn how a year after the ban, students and teachers are already noticing positive effects and recording improvements in academic performance with increased attention and active participation.

With 1,000 buses sent abroad, the Brazilian manufacturer consolidates the strength of national technology and takes on a leading role in public transportation across all of Latin America.

More than 1,500 Chinese workers transformed an entire railway station in just one night and reduced a 7-hour journey to 90 minutes with a high-speed line of 200 km/h.

Brazilian city becomes a global destination after attracting tourists who travel up to 10,000 km to visit a sanctuary with 11 giant saints up to 10 meters tall, open 24 hours and located along a highway in SP.

JBL Flip Essential 3 SE is launched with 30W of power (20W + 10W), Bluetooth 5.4, Auracast for multiple connections, IP67 water and dust resistance, up to 12 hours of battery life, and a price of approximately R$ 660 in China.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

Pernambuco paradise with 59% of preserved area advances with R$ 2 billion in e-methanol, aims for 900 tons/day, grows 38.6% and builds electrified terminal of 400 thousand TEUs.

Brazil may have railways back on the map, but it will need the government: a study reveals 7,412 km ready for reactivation, a cost of R$ 75 billion, 61 sections analyzed, and none viable without public funding.

Currency Crisis: Argentine Peso Surpasses Brazilian Real as Brazil Faces Worst Currency Performance in 2024; Country Confronts Economic Challenges

On Monday (17), the Argentine peso surpassed the Brazilian real around 4 PM, placing Brazil in the position of the worst currency performance among emerging countries this year.

The Influence of Interest Rates in the U.S. on the Weakening of the Real

Internal Impacts on the Real

What Are the Forecasts and Perspectives for the Future

A giant half-ton ring fell in Kenya from space, and more than a year later, scientists still do not know where it came from.

Seen from space, an image taken by an astronaut shows an unlikely oasis in the Saudi Arabian desert, protected by a terrain that slows the advance of sand, surrounded by green circles, remnants of an extinct lake and nearly 10,000 years of preserved history.

In Botswana, a salt flat of up to 16,000 km² that was once an African megalake spends months as an absolute white desert, but during the rainy season it transforms into a shallow sea that reappears from nowhere and can be seen from space in the middle of southern Africa.

Bavarian archaeologists unearthed a medieval skeleton that had an articulated iron hand in place of its left arm, and the discovery reveals that doctors were already creating sophisticated prosthetics over 500 years ago.

Cell phones in schools: learn how a year after the ban, students and teachers are already noticing positive effects and recording improvements in academic performance with increased attention and active participation.

With 1,000 buses sent abroad, the Brazilian manufacturer consolidates the strength of national technology and takes on a leading role in public transportation across all of Latin America.

More than 1,500 Chinese workers transformed an entire railway station in just one night and reduced a 7-hour journey to 90 minutes with a high-speed line of 200 km/h.

The World Bank issues urgent warning about jobs after the war in the Middle East and reveals an alarming scenario with rising unemployment, falling income, and the risk of a deep global economic crisis.

With millions of Brazilians in debt and interest rates soaring, the proposal to use FGTS to pay off debts reemerges and sparks immediate curiosity: does clearing one’s name this way really change life or just create a temporary sense of relief?

Brazil tightens the grip on billionaires with assets over US$ 100 million, targeting billionaires, business owners, and heirs who currently pay proportionally less tax than most of the population.

Petrobras puts R$ 5 billion on the table to bring to life a colossal factory that has been idle for almost 10 years to end dependence on international fertilizers.

The BYD case on the dirty list evolves rapidly, secretary is dismissed after contested inclusion, court suspends registration, and tension with tax auditors intensifies behind the scenes.

Brazilian city becomes a global destination after attracting tourists who travel up to 10,000 km to visit a sanctuary with 11 giant saints up to 10 meters tall, open 24 hours and located along a highway in SP.

JBL Flip Essential 3 SE is launched with 30W of power (20W + 10W), Bluetooth 5.4, Auracast for multiple connections, IP67 water and dust resistance, up to 12 hours of battery life, and a price of approximately R$ 660 in China.

After ten days orbiting the Moon, science confirms that the astronauts of the Artemis II mission return with altered bodies.

Pernambuco paradise with 59% of preserved area advances with R$ 2 billion in e-methanol, aims for 900 tons/day, grows 38.6% and builds electrified terminal of 400 thousand TEUs.

Brazil may have railways back on the map, but it will need the government: a study reveals 7,412 km ready for reactivation, a cost of R$ 75 billion, 61 sections analyzed, and none viable without public funding.