Brazilian Real Pares Losses as Central Bank May Raise Rates
The Brazilian real pared today its previous losses on the outlook for the central bank to increase the interest rates, attracting more investors to the country.
The analysts say that the central bank may raise the interest rates to battle the high inflation, which reached 5.2 percent, the highest level in five months. The traders bet that the central bank’s policy makers would perform the interest rates hike on their next meeting on December 8th and they would boost the rates from 10.75 percent to 12.5 percent by the end of the next year.
USD/BRL fell from 1.7285 to 1.7190 as fo 16:27 GMT today, following the decline to 1.7150.
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Earlier News About the Brazilian Real:
- Brazilian Real Gains as Risk Appetite Increases (2010-11-18)
- Brazil's Real Rises on Better Consumer Sentiment (2010-07-30)
- Brazilian Real Falls as Central Bank May Intervene to Curb Gains (2010-07-28)
- Brazilian Real Drops vs. Euro on Concern for Global Recovery (2010-07-15)
- Brazilian Real Drops as Mantega Curbs Appreciation (2010-06-23)