Seems like the Real (BRL) still has more room to come down against the US Dollar.
According to World Economics, the Real remains overvalued by 19%, which makes its fair value at around $2.90-2.95 to the US Dollar exchange (it currently trades at R$2.35).
The World Price Index (WPI) indicates that even though the Real has depreciated in the last year, it still remains overvalued. The WPI measures the value of an urban selection of goods and services at purchasing power parity, reflecting the real purchasing power of different nations, allowing for rapid and accurate international price comparisons.
It is of our opinion that Brazil may start growing again once its currency gets closer to fair value.
Source: World Economics