USD/BRL steady after Brazil’s senate votes to impeach Rousseff

The Brazilian real remains within the trading range of the previous days after the Senate voted to impeach Dilma Rousseff on charges of manipulating the federal budget. She was suspended back in May and now she has been impeached. Michel Temer will be confirmed in a few hours as president until 2018.

The vote was 61 to 20 against Rousseff. The result was expected. The positive surprise to Dilma was that a motion to ban her from public office for eight years was defeated.

USD/BRL is trading at 3.24, practically unchanged from yesterday’s closing price. Also, it continues to move sideways between 3.28 and 3.22 since last week. Earlier in August it bottomed at 3.11, hitting the lowest level in a year. The real continues to be among the top performers of 2016.

The central bank will announce its decision on monetary policy in a few hours. It is expected to keep the key interest rate unchanged at 14.25%. Analysts will look to see if the bank signals possible rate cuts in the future or if it continues with the current neutral trajectory.