Real down on economic forecast and Mexican Peso falls on political slump
Real down on economic forecast and Mexican Peso falls on political slump
09-12-2009 14:22
The Brazilian Real reached the highest level in one year against the US Dollar this week, followed by a corrective decline due to expectations indicating that the largest economy in South America may not contribute to an extended rise of the Real. Mexico’s Peso gained during this week’s trading session on the back of rising risk appetite in global trading markets increasing the demand for emerging currencies, while this Saturday, the Peso dropped as a result of the opposition party’s point of view towards new laws that will result in higher taxes.Economic forecast
Despite a report suggesting that the Brazilian economy grew in the last quarter, the country’s currency was not able to continue its rise as it reached the highest level in a year earlier this week, after corrective movements and expectations concerning the prospects of the country’s economy affected the forecast for the Real, as it dropped by more than 1% against the US Dollar at the end of this week’s trading session.Political slump Mexico
Felipe de Jesús Calderón Hinojosa, Mexico’s current president, is having difficulties with the approval of his new series of laws in the nation that would lead to higher taxes on medicines and foods, which is one of the measures of the fiscal restructure in order to restore the nation’s budget. Most likely the measures will not find sufficient support, according to the opposition party, on which the Mexican Peso declined this Saturday.
