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SpanishLatam FX weak, Brazil’s real drops ahead of pension reform plans
Latin American currencies weakened against the U.S. dollar on Monday, with Brazil’s real underperforming its peers ahead of anticipated pension reforms to be presented to congress later this week. The real slipped 0.8 percent, underperforming its peers, as President Jair Bolsonaro is expected to face opposition from congress, possibly delaying the passage of reforms seen as essential for shoring up the economy.
“Pension reforms are considered crucial by the market with respect to the real outlook… There are indications that any reform will progress very slowly in congress,” said Esther Reichelt, an FX analyst at Commerzbank.
“Any negative news on this front is always negative for the currency because there is always a concern that this could trigger a rating downgrade,” she said.
Read more @Reuters
