Friday, May 18, 2007

Brazil Real Falls on Speculation the Central Bank Will Move to Slow Rally

(Bloomberg) -- Brazil's currency fell on speculation
the central bank may sell reverse currency swaps in addition to
its daily dollar purchases to slow a rally that has added more
than 3 percent to the currency this week.

``There' still some doubt about how strongly the bank will
act now that the real is trading beyond the 2-per-dollar
level,'' said Hideaki Iha, a currency trader at Fair Corretora
de Cambio in Sao Paulo.


Read more at Bloomberg Currencies News

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