Brazilian real exchange rate at 6.5% as markets rally

Brazil’s benchmark real exchange rates are at 6,500,000 reais (US$7,000) and 6,000,000 bolivars ($6,000), a new record low.

The Bovespa exchange rate stood at 695,000.00 reais, according to data from Reuters.

The Brazilian dollar, meanwhile, stood at 2,900,000 pesos (US $1.4570) per dollar.

The data came as the central bank of Brazil’s biggest economy announced its first quarterly inflation report for 2019.

The inflation rate for September was 2.6 percent, according a report by the National Bank of Brasilia (BNC).

Analysts said the inflation rate was probably the lowest in the last six years. 

Brazil’s central bank has been on a inflation-fighting path for some time now, as the country has seen record-low inflation rates in recent years.

In September, the central Bank of Brazil published a revised inflation forecast of 3.5 percent in 2019. 

Analysts also said the government’s latest economic forecasts, which had forecast inflation to be around 3 percent this year, were too optimistic. 

“There is little doubt that inflation will rise further and the economy will suffer a severe recession,” said Renato Gomes, a research fellow at the Instituto Nacional de Estudios de Economia e Tecnologia.