(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
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
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