Tuesday, September 21, 2010

Brazil's Inflation Spikes, SWF Very Ready to Act on Exchange Rate

Brazil's inflation spiked to 0.31% in September, above median expectations of 0.24%, hence EWZ (the main Brazilian ETF) is down.

Also, Brazil's finance minister says that Brazil's SWF has not yet acted on the exchange market, but it's very ready to act. For readers who don't know, The Brazilian real has appreciated significantly in recent months, and is the best performing currency lately. Brazil is upsets that the US, Europe and Japan are all devaluing their currencies.

Both news are of course contradictory. To combat inflation the central bank normally raises rates. Higher rates normally means a higher currency.

Brazil's currency ETF is BZF.

This is fun.

Stumble Upon Toolbar

No comments:

Financial TV

Blog Archive

// adding Google analytics