The real’s second week of solid appreciation coincided with surprisingly upbeat first quarter gross domestic product data on Tuesday, which sparked a wave of upward revisions to 2021 growth forecasts to as high as 5.5%.
The real closed trading on Friday at 5.0360 per dollar , its strongest close since June 10 last year and up almost 1% on the day.
Luciano Rostagno, chief strategist at Mizuho in Sao Paulo, noted that the real outperformed its peers for the second week in a row.
The next major resistance level to watch for is the 5.00 per dollar level, which was resistance that capped the rally in December,” Rostagno said.
The real is now up around 2.5% year to date, closely tracking the move in interest rate spreads, a close barometer of the fiscal concerns which play a key role in the exchange rate.
Luciano Rostagno, ” Rostagno
BRASILIA, Sao Paulo