BRASILIA — Brazil’s currency will fall to a new low of 4.50 per dollar this year, Capital Economics forecast on Friday, predicting slower growth, lower interest rates and worse balance of payments dynamics than the current market consensus.
One of the most gloomy outlooks to date for the real, it assumes renewed selling pressure will knock away any support the currency gets from the central bank’s intervention in the swaps market this week.
The last Reuters poll published on Feb. 5 projected the real at 4.00 per dollar in 12 months time, and the latest weekly central bank ‘FOCUS’ survey of economists put it at 4.10 per dollar at the end of this year.
On Friday it was trading around 4.31 per dollar <BRBY>.
“We see little