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Genoa Capital, a Brazilian hedge fund with $3.8 billion under management, says investors should bet on the Brazilian real and stocks as the central bank's cautious approach to rate cuts reduces the appeal of local rates. Genoa's chief economist sees fair value for the real closer to 4.5 per dollar than 5, versus about 4.83 currently.
The real is among the best performing major currencies this year, trailing only the Mexican peso.
A stronger real would make Brazilian-origin feed ingredients such as soymeal and corn priced in dollars relatively cheaper for local buyers and could ease import costs. The view is an opinion piece on currency positioning rather than a new shock to supply or demand.
bloomberg.comRachel Gamarski, Felipe SaturninoDec 27, 2023Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
