Euro slips ahead of central bank meetings, real tumbles
TLT•The euro fell 0.21% against the dollar to $1.1179, while Brazil’s real dropped 8.5% to 5.4 per dollar after Luiz Inacio Lula da Silva won a fourth term. Five major central banks are due to announce policy decisions later in the week.
1. Euro pressured by outlook
The euro fell against the dollar on Monday ahead of a busy week of central bank meetings. It was down 0.21% at $1.1179, with elevated oil prices and concerns about euro zone financial stress weighing on the currency. Brent crude settled 0.78% lower at $115.81 per barrel.
2. Real drops after election
Brazil’s real fell 8.5% to 5.4 per dollar after Lula won a fourth term against Senator Flavio Bolsonaro. Brazilian markets had bet on Bolsonaro’s victory; he refused to concede and said he would seek to have the result annulled.
3. Policy decisions due
The Federal Reserve, European Central Bank and Bank of Japan are expected to hold rates steady, while New Zealand’s and Canada’s central banks are expected to raise rates. The dollar index rose 0.31% to 102.
