Could we have a new plunge protection team after new Finance Minister took office?
After briefly going over 4 again, the Real mysteriously came back down to 3.85 .
Minister Barbosa entered office last week pledging to carry out his predecessor Joaquim Levy’s belt tightening programs in order to reverse the primary budget deficit next year. But his task may become increasingly difficult amid a faltering economy, dissent in Congress and pressure from some members of the ruling party to focus on stimulus measures.
The real had depreciated 1.6 percent on news last week that Barbosa would take Brazil’s top economic job, as investors feared he will ease up on fiscal austerity. The currency appreciated 2.13 percent in mid-afternoon trading Monday on dollar inflows from local exporters.
Meanwhile the ruble again went to new record low.