The Brazilian real on Thursday slipped against the U.S. dollar, tugged down by rough economic waters in the euro zone as investor interest deviated from the monetary unit of the largest Latin American economy, Reuters reports.
Cyprus, if it does not handle circumstances regarding its troubled finances and the bailout aid made available for it last weekend by this coming Monday, will be frozen out by the central bank of Europe. Its political leadership earlier this week turned down mandatory taxes on bank deposits.
The real fell to its lowest value in about two months on Thursday against the world's reserve currency, according to Bloomberg.
The real also was pinched by minutes of the March 5 and 6 meeting of the Reserve Bank of Brazil, which indicated the body is unlikely to raise interest rates from the 7.25 percent at which it presently stands.
"The underperformance of the real reflects the contradictory policies of the government," market strategist Flavia Cattan-Naslausky with Royal Bank of Scotland Group Plc in Connecticut told Bloomberg on Thursday. "The probability of a Selic increase in April diminished. It's more probable there will be an increase in May."
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