Brazil’s exchange rate may weaken to 2.40 reais per U.S. dollar in one to two years after the Federal Reserve signaled it may pare back monetary stimulus, said David Beker, the chief Brazil economist at Bank of America Merrill Lynch.
“The tendency for the next quarters and maybe years is for dollar appreciation and more depreciation pressure for emerging markets,” he said in an interview at his office in Sao Paulo today. The bank forecasts a rate of 2.20 reais per U.S. dollar at the end of the year.
To contact the reporter on this story: Francisco Marcelino in Sao Paulo at firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com