HALISTER1: BRL Unlikely to Extend Recent Weakening: Templeton

BRL Unlikely to Extend Recent Weakening: Templeton

(Bloomberg) -- BRL’s recent weakening vs. USD caused mainly by speculation about outlook for Fed’s monetary policy and President Trump’s fiscal plan, but move is not sustainable, Franklin Templeton Investments Brazil’s fixed income CIO Rodrigo Borges says in a telephone interview.
  • If the world economy grows robustly, even w/ Fed’s monetary policy generating noise, it’s still going to be a positive scenario for emerging markets: Borges
  • For Brazil politics, investors does not believe in a reasonable pension reform
  • Elections in 2018 are important and may be keeping Brazilian markets to perform better, but it doesn’t cause great impact to either side yet because it’s still too far away
  • NOTE: BRL -2.9% MTD, 3rd-worst performer among emerging currencies
To contact the translator on this story: Daniela Milanese in Sao Paulo at dmilanese@bloomberg.net To contact the translation editor responsible for this story: Daniela Milanese at dmilanese@bloomberg.net; Ney Hayashi at ncruz4@bloomberg.net Reporter on the original story: Josue Leonel in Sao Paulo at jleonel@bloomberg.net Editor responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
BEN US (Franklin Resources Inc)

People
Rodrigo Borges (Franklin Resources Inc)
Donald Trump (United States of America)

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