Small font size A Larger text size A Largest text size A

Brazil's economic policy secretary sees normalization in FX rate

BY Reuters | ECONOMIC | 02/13/25 01:49 PM EST

BRASILIA, Feb 13 (Reuters) - Brazil's Economic Policy Secretary Guilherme Mello said on Thursday he sees the exchange rate of the local real currency against the U.S. dollar normalizing, following a sharp depreciation late last year, which he believes does not reflect the country's economic fundamentals.

Speaking at a press conference, Mello said the Brazilian real's volatility is undesirable, but structural, given the characteristics of the country's foreign-exchange market, which is heavily influenced by derivatives. (Reporting by Marcela Ayres; Editing by Kylie Madry)

More Fixed Income News

Form 424B2 ROYAL BANK OF CANADA BY EDGAR SEC Filings |ECONOMIC 05:30 PM EDT
Negative S&P outlook for seven California utilities on wildfire risk BY SourceMedia Bond Buyer |MUNICIPAL 05:02 PM EDT
AM Best Affirms Credit Ratings of Western & Southern Financial Group, Inc. and Its Subsidiaries BY Business Wire |CORPORATE 04:57 PM EDT
Form FWP ROYAL BANK OF CANADA Filed by: ROYAL BANK OF CANADA BY EDGAR SEC Filings |ECONOMIC 04:49 PM EDT

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article