The Brazilian real has been on a rollercoaster ride in recent weeks, Commerzbank FX analyst Michael Pfister notes.

Trades right below 5.70

“After reaching its highest level in almost two and a half years at 5.70 in early July, the c exchange rate fell sharply in the following days amid pronounced USD weakness. However, the low levels did not last long.”

“One can almost feel sorry for the Brazilian finance minister. For weeks he has been trying to reassure the markets that Brazil is taking concerns seriously and reducing the budget deficit, only for Lula to raise fresh doubts. Friday's announcement of a BRL15bn spending freeze did little to help matters.”