UBS has found the currency to make profit from
Brazilian real "is at its most attractive level since the reversal of the world commodity cycle in 2011," UBS experts say.
The currency has fallen compared to other currencies since 2017 as the country emerged from a recession that lasted 2 years with lower interest rates and weak economic growth. The Covid-19 crisis further devalued the currency.
Brazilian real (BRL) traded at 5.30 per USD compared to 5.90 in May. Before the coronavirus pandemic it was closer to 4 per USD. UBS believes that the devaluation has gone far from historical patterns. While risks continue to remain, UBS sees "the potential for BRL recovery in the coming weeks".