Real rises following central bank chief remarks

Posted On: February 07, 2013

The monetary unit of Latin America's largest economy achieved a sharp advance on Thursday amid data demonstrating consumer inflation advanced at its most rapid monthly pace since 2005 during the month of January, according to Reuters.

The Brazilian real benefited from conjecture about policy makers with the Reserve Bank of Brazil moving forward with enhancing the currency's strength or implementing another economy-spurring method to preserve low prices. President Alexandre Tombini noted his concern about inflation in the near term during an interview with a Brazilian publication.

"What changed in the economic outlook from last year was inflation. The government is now signaling an exchange rate closer to 2 reais," economic consultant Mauricio Nakahodo with Tokyo-Mitshubishi bank in Sao Paulo told the news source on Thursday.

The real's gains on foreign exchange markets climbed as high as 1.3 percent against the U.S. dollar to achieve its top value in about nine months following the central bank chief's commentary.

Bloomberg reports the real distinguished itself as the strongest performing of emerging market currencies during the trading session on Thursday.

Category: Industry News

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