The euro has overtaken the dollar as the most traded currency in Brazil this September. A survey by Travelex Confidence reveals this shift in currency transactions.
The European currency saw a 20% increase in trading volume compared to the previous month. In June, during the Paris Olympics and vacation season, the euro briefly held the top spot.
Now, as Brazilian tourists seek to avoid peak season at the end of European summer, the euro has reclaimed its position. Jorge Arbex, director of Travelex Confidence Group, explained the surge in euro demand.
He noted that many people postponed their travels to the end of European summer to avoid the Olympic Games period. On October 17, the ECB implemented its third cut of the year.
The adjustment lowered the rate by 0.25 percentage points to 3.25%. Markets anticipate three more reductions by March, as inflation appears under control.
Mônica Araújo, allocation strategist at InvestSmart XP, commented on potential short-term pressure on the euro. She pointed to the interest rate differential between Europe and the USA as a factor to watch.
Meanwhile, the Japanese yen has also gained prominence. During the analyzed period, it reached 5th place with a 29% increase in trading volume.
This surge relates to the reciprocal visa exemption between Brazil and Japan for 90-day stays, effective since September 2023. The rise in yen transactions may continue for at least three years.
This duration aligns with the agreement’s validity period, potentially sustaining increased currency exchanges between the two countries.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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