Brazil real to fall to 4.50 per dollar? Capital Economics thinks so

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.

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