LONDON: The Brazilian real could be due a change in fortune against the dollar after its lengthy slide from 1.7067 on Feb 29 to last week's close at 2.0980.
After the real weakened past what is considered to be the limit of an informal 2.0-2.10 per dollar trading band recently enforced by the central bank, Treasury chief Arno Augustin said the exchange rate was at a level closer to what is best for the local economy.
While that signifies the Brazilian government favors a weak real to help boost Brazil's lagging industrial sector, it might also signify that Augustin feels the local currency's depreciation may have gone as far as it should.
Therein lies the risk for traders.
Brazil's central bank notably ended a year of aggressive interest rate cuts on Wednesday leaving its benchmark rate unchanged at a record low but still eye-catching 7.25 percent.
The central bank's decision was predicated on the fact that the current interest rate would help contain inflation pressures that saw price rises quicken to 5.64 percent in the month to mid-November up from 5.56 percent one month before.
If the central bank is showing more concern about inflation worries than about Brazil's uneven economic recovery, the market may construe that to mean the authorities feel the slide in the real has gone far enough.
A weak real encourages import price inflation by making imported goods more expensive in local currency terms.
It is also possible that data due on Friday will show Brazil's economy expanded in the third quarter at its fastest pace in more than two years, as forecast in a Reuters poll of economists. If so, that could ignite some speculative demand for the Brazilian real.
Even if the data, due at 1100 GMT, is "nothing spectacular", as Finance Minister Guido Mantega said, the government is preparing to unveil more stimulus measures, including tax breaks.
Brazil's 7.25 percent yield is beguiling, but perhaps of greater interest are possible intimations that Brazil's policymakers may feel the real has weakened far enough.
Traders may feel a move lower in the dollar/real exchange rate back towards the 100-day moving average, currently 2.0367, might be in the offing.
— Neal Kimberley is an FX
market analyst for Reuters. The opinions expressed are his own.
Brazil's real due a rally against dollar
Brazil's real due a rally against dollar
PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025
RIYADH: Saudi Arabia’s Public Investment Fund-backed AviLease achieved exceptional performance and sustainable business growth during 2025, supported by the strategic expansion of its global platform.
According to its financial results for 2025, AviLease recorded total revenues of $664 million, an annual increase of 19 percent, driven by disciplined growth in its asset portfolio and strong performance in aircraft remarketing amid sustained global demand for modern, fuel-efficient aircraft, the Saudi Press Agency reported.
Profit before tax doubled compared to the previous year, reaching $122 million. The year witnessed an expansion in AviLease’s portfolio, reaching 202 owned and managed aircraft, leased to over 50 airline companies in more than 30 countries.
The total value of the company’s assets stabilized at $9.3 billion. AviLease maintained a 100 percent fleet utilization rate, reflecting the resilience of its business model, the efficiency of its asset management, and the strength of its strategic relationships with airlines around the world.
AviLease concluded purchase agreements for aircraft from Airbus, including the A320neo family and A350F, and Boeing 737 aircraft, aiming to enhance its future asset portfolio with modern, fuel-efficient aircraft. This step will contribute to supporting future growth and meeting increasing customer demand for the latest aircraft, aligning with the Kingdom’s ambitions to become a leading global aviation hub.
AviLease strengthened its prestigious credit standing by obtaining a strong Baa2 credit ratings from Moody’s and BBB from Fitch, reflecting its financial solidity, managerial discipline, and efficiency in managing leverage. The company also successfully issued senior unsecured bonds worth $850 million last November under Regulation 144A/RegS. This issuance contributed to diversifying its funding sources and enhancing its financial flexibility.
Commenting on the results, AviLease CEO Edward O’Byrne said: “This exceptional performance reflects the quality of the company’s investment portfolio, the strength of its partnerships with airlines, and its strategic focus on responsibly deploying capital into highly sought-after, efficient, modern aircraft assets.”
He added: “As aviation markets continue to grow, AviLease is strategically positioned to continue its expansion plans and deliver sustainable long-term value for shareholders, contributing to the Kingdom’s ambitions.”
Throughout 2025, AviLease continued to play a pivotal role in the Kingdom’s growing aviation sector and contributed directly to the launch and scaling of the new national carrier, Riyadh Air, by completing a sale and leaseback transaction for a Boeing 787-9 aircraft, which thereby became the first aircraft to join the airline’s fleet.
AviLease also established a strategic partnership with Hassana Investment Co. This partnership aims to provide an opportunity for local and international investors to enter the aircraft financing asset class and benefit from AviLease’s technical expertise and operational capabilities to support partnership growth and enhance performance.
Hassana Investment Co. has agreed to acquire an initial portfolio of 10 modern aircraft from AviLease.
