Brazil’s real soared Monday to its highest level against the dollar since 1999, when the South American giant delinked from the US currency.
The surging currency in general have been strongly positive for regional companies. They have attracted foreign investment and have increased buying power in overseas markets for local firms and the people. This ends up boosting economic growth. But rapid growth also fuels the spiral of inflation, which can eventually snuff out the benefits of growth and also cause hardship for those on the lower rungs of society.