Friday, October 10, 2008
Another Big Leg Down On Bovespa
Check out the Bovespa 3 year chart. (You'll have to click on the 3 year tab.) Brazil is selling US dollars to try to stem the fall of the Real, and Mexico is trying to sell USD to shore up their peso. India has been fighting a losing battle to shore up the rupee using similar tactics.
For American manufacturers, all this is not exactly good news. First, the economic conditions indicate a slowdown of precisely the segment in which many of our manufacturers compete well. Second, the USD is appreciating against a lot of currencies, making them less competitive.