(Bloomberg) -- Brazil's real weaken for a second day
on concern the central bank is increasing purchases of dollars to
stem a rally that has pushed the currency to a six-year high.
``The central bank may act more strongly in the spot market
or with derivatives to control the speed of the rally a bit,''
said Miriam Tavares, foreign exchange director at Sao Paulo-based
AGK Corretora. ``There is a natural appreciation trend because of
strong inflows so the real will probably trade around 1.90 to the
dollar in the very short term.'' She said if the central bank
doesn't act to cool gains, the real could strengthen beyond 1.90-
per-dollar.
Read more at Bloomberg Currencies News
on concern the central bank is increasing purchases of dollars to
stem a rally that has pushed the currency to a six-year high.
``The central bank may act more strongly in the spot market
or with derivatives to control the speed of the rally a bit,''
said Miriam Tavares, foreign exchange director at Sao Paulo-based
AGK Corretora. ``There is a natural appreciation trend because of
strong inflows so the real will probably trade around 1.90 to the
dollar in the very short term.'' She said if the central bank
doesn't act to cool gains, the real could strengthen beyond 1.90-
per-dollar.
Read more at Bloomberg Currencies News
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