Dollar to R$6 Enters the Radar After Lula's Victory, but Depends on a Factor, According to Morgan Stanley – Money Times
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4 Articles
If there is no signal from the government about adjustments in public accounts, investors can bet on an even more intense worsening of Brazilian assets. That's what strategists Ioana Zamfir and Sofia Palacios, Morgan Stanley, say, in a report sent to customers on Monday (26). The market is likely to quickly withdraw most — if not all — of the 130 basis points (1.3 percentage point) of interest cuts that were fixed in the short part of the curve …
Containment of the 'blood' that led the dollar above R$ 5.40 and the stock exchange to have negotiations interrupted will depend on government signaling for adjustment of public accounts, analysts say.
The high recorded on Monday, in the wake of the re-election of President Luiz Inácio Lula da Silva, was the largest of the American currency in 23 years
The dollar can reach R$ 6 if there is no sign of adjustment in the public accounts in the coming weeks, in the evaluation of Morgan Stanley. However, this is not yet the base scenario of the bank. In report to customers released on Monday (26), day after the re-election of President Luiz Inácio Lula da Silva (PT), the [...]
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