Thursday, May 24, 2007

Brazilian Real Falls as Rise in U.S. Yields Saps Demand for Risky Assets

(Bloomberg) -- Brazil's real weakened for a third
day as rising U.S. bond yields cut into demand for riskier,
emerging-market securities.

The real slid as much as 0.7 percent today after the yield
on benchmark U.S. 10-year bonds rose 23 basis points, or 0.23
percentage point, this month to 4.86 percent. Yields are rising
in the world's biggest economy, narrowing the gap between U.S.
and Brazilian yields, as speculation fades that the Federal
Reserve will cut interest rates.


Read more at Bloomberg Currencies News

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