SAO PAULO (Reuters) – Santander Brasil Asset Management remains neutral on the real, assessing that the global outlook of tighter financial conditions and long-term domestic fiscal uncertainties could weaken the Brazilian currency.
The manager adopted a neutral assessment for real and nominal interest rates and continued with a cautious scenario for variable income, after recording a positive result in the interest and stock market portfolios, but slightly negative in the exchange rate in March.
“The significant foreign flow remained a determining factor during the month (March) and contributed to the performance of the local stock exchange. Despite this relief, monetary tightening and the continuation of the conflict (in Ukraine) should prevail, bringing still high volatility,” the house said in an April monthly letter.
In the case of fixed income, the manager understands that the environment remains “challenging” despite the Central Bank’s signal about the end of the monetary tightening cycle. “The global inflationary scenario and the geopolitical situation should still bring uncertainty to fixed income assets,” she said.
(By Jose de Castro)
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