Brazilian real climbs against greenback

Posted On: February 08, 2013

The monetary unit of the largest economy in Latin America pushed to its top value in nine months on Friday against the U.S. dollar on foreign exchange markets, according to Bloomberg.

Commentary by Finance Minister Guido Mantega in Brazil proved to be beneficial to the Brazilian real as he noted that the government he serves will permit the monetary unit to advance an additional 5 percent and then the Reserve Bank of Brazil will intervene.

"Mantega mentioned 1.85 as a potential new ceiling but interventions today signal that appreciation will be managed gradually in line with rising inflationary concerns," emerging-markets strategist Bernd Berg with Credit Suisse Group told the news source on Friday.

The real pushed to its top level against the U.S. dollar since early May of last year. This week has been a good one for the real, which has advanced 0.7 percent amid conjecture that policy makers with the central bank are prepared to facilitate the currency's rise to offset inflation.

The Wall Street Journal reports inflation figures from last month in the South American nation were surprisingly high.
 

Category: Industry News

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