Halister News

(Bloomberg) -- Recent BRL depreciation is being triggered by a scenario of stronger USD around the world, in face of expectations on Federal Reserve’s succession and Donald Trump’s tax reform, says Mauricio Oreng, strategist at Rabobank in Brazil, in a telephone interview.

• Main risk for the Brazilian real is the repricing of emerging assets due to changes in U.S. monetary and tax policies
• On the domestic scenario, Oreng believes that markets may not be pricing in the pension reform to pass in 2017, but they certainly are for 2019, 2020
  • It seems that the sense of urgency of political class has diminished: Oreng
• Rabobank sees USD/BRL at 3.20 in YE 2017, 3.40 in YE 2018

To contact the translator on this story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net To contact the translation editor responsible for this story: Ney Hayashi at ncruz4@bloomberg.net Reporter on the original story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net Editors responsible for the original story: Daniela Milanese at dmilanese@bloomberg.net Taís Fuoco