BUENOS AIRES, July 6 Reuters Brazil39;s currency will likely enjoy some support in the near term from faster economic growth and progress on reforms, despite the prospect of less favorable interest rate spreads ahead, a Reuters poll showed.

The real , appreciated last month to its firmest level in a year after several forecasts were improved and key fiscal changes proposed by the government of President Luiz Inacio Lula da Silva made headway in congress.

The real is seen gaining a further 0.6 in three months to 4.81 per U.S. dollar from 4.84 on Tuesday, according to the median estimate of 26 foreign exchange analysts surveyed June 30July 3.

The local story has turned more constructive, with Lula39;s administration largely moderating versus initial expectations set in November, said Erick Martinez, Latin America FX rates strategist VP at Barclays.

In 12 months, the real is expected to lose 3.2 to 5.00 per U.S. dollar, but that would be a relatively small drop for the Brazilian currency, still leaving it trading close to its midpoint since 2020.

Some economists warned of diminishing carry trade value for the real into next year, given that Brazil39;s central bank will probably inaugurate a phase of gradual policy easing soon, following marked disinflation trends in recent months.

This would reduce the big differential between Banco Central do Brasil39;s benchmark rate, currently at 13.75, and the U.S. fed funds rate range of 55.25. The spread could shrink further…