Tuesday, May 22, 2007

Brazil's Real Declines on Speculation Central Bank to Temper Currency Gain

(Bloomberg) -- Brazil's real reversed early gains,
declining on speculation the central bank may boost dollar
purchases in the spot market to slow a rally that has added 10
percent to the currency this year.

``It looks like the bank is working to keep the exchange
rate stronger than 1.90, so it may have to soak up a lot of
excess dollars through its interventions,'' said Emilio
Garofalo, a former central bank director who now runs the
investment consulting company EBS Capital in Sao Paulo.


Read more at Bloomberg Currencies News

No comments: