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The Brazilian real (BRL) is the most undervalued emerging market (EM) currency, according to Robin Brooks, according to Robin Brooks, chief economist at the Institute of International Finance (IIF). 

Undervalued by 20% according to our fair value model, the real is slowly starting to recover, powered by the current account surplus and a gradual recovery in foreign portfolio flows, Brooks tweeted. 

Real’s fair value is 4.50 per US dollar, according to IIF. The USD/BRL pair was last seen near 5.32.