05/04/2013 14:07:00

Brazil Real Opens Stronger on U.S., Europe Data, Selic Outlook

SAO PAULO--Brazil's real opened stronger Friday, accompanying global currencies, as the U.S. reported slower job creation and Europe reported better economic data, while in Brazil investors prepare for possible interest-rate increases.

The real opened at BRL2.0115 to the dollar, according to Tullett Prebon via FactSet, slightly stronger than Thursday's close at BRL2.0157 to the dollar.

The euro strengthened somewhat against the dollar early Friday after Germany's manufacturing data topped market estimates. Meanwhile, the U.S. reported the slowest month of job creation since June, with 88,000 jobs added last month, less than the 200,000 expected by economists surveyed by Dow Jones Newswires.

At the same time, Brazilian investors are monitoring the central bank for signs it will increase the benchmark Selic interest rate, at a record low of 7.25% since October, at its next monetary policy meeting later this month. Late Thursday, Finance Minister Guido Mantega acknowledged that the central bank has authority to raise or lower interest rates as needed, but said that monetary policy in Brazil has become more efficient, and rates shouldn't have to vary as much as they used to in the past.

President Dilma Rousseff's government has been reluctant to permit rate increases because it doesn't want to counter its efforts to boost growth as the economy stalls. The government has been slashing taxes as part of its effort to lower prices and ease inflation pressure. To that end, it announced early this morning that it will extend payroll tax cuts to several more industries.

After outflows at the start of the year as investor mood soured on Brazil, now "investors are trying to anticipate the moment when the government will have to raise rates to contain inflation," said Reginaldo Galhardo, currency trader at brokerage Treviso.

Brazil's monetary policy committee next meets April 17.

Write to Paulo Winterstein at paulo.winterstein@dowjones.com

(END) Dow Jones Newswires

April 05, 2013 09:07 ET (13:07 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
02 Dec
ZEAL
For en gangs skyld og kun denne ene gang svarer jeg dig.   Jeg anser dine indlæg omkring Zealand græ..
40
05 Dec
NETS
Handles nu under kurs 115; absolut en af de mest pinlige IPOs i nyere dansk børs-historie.   Selskab..
32
06 Dec
NVO
Det meddeles her til aften fra UBS hovedkvarter at man har med øjeblikkelig virkning har hjemsendt e..
31
04 Dec
VWS
Det er lettere at se hvad DU ikke fatter. USA har, med et flertal af stemmer i kongressen, underskre..
30
03 Dec
VWS
Der er delte meninger om aktiekursen på Vestas. Vi har jo alle hver vores måde at vurdere virksomhed..
26
04 Dec
 
Du forveksler din såkaldte anstændighed og ansvarlighed med naivitet og misforstået godhed. Grenen v..
18
02 Dec
ZEAL
Novo Nordisk og Zealand er nu med i den helt absolutte front i kombinations behandling af diabetes -..
18
07 Dec
VWS
Teknisk set er du en klovn
17
05 Dec
 
Hej. Jeg kan se, at flere allerede er i gang med at skændes denne herlige mandag morgen. Jeg vil dog..
17
03 Dec
ZEAL
I ugens løb kom det frem, at Svenska Handelsbanken havde sænket anbefalingen på Zealand og at Aktieu..
17

G4S plc UK DK : Statement re Extension to UK asylum accommodation contract

08/12/2016 11:32:35
8 December 2016 Extension to UK asylum accommodation contract G4S, the leading global integrated security company, is pleased to note the Immigr..

HSBC Bank Plc : Form 8.5 (EPT/RI) - London Stock Exchange Group Plc

08/12/2016 10:51:58
FORM 8.5 (EPT/RI) PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY ..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Fingerprint Cards adjusts its 2016 revenue forecast
2
Fingerprint Cards communicates guidance for 2017
3
Dynapower and Samsung SDI Launch Integrated Storage Solution for the Behind-the-Meter Energy Storage Market
4
Nexeo Solutions, Inc. Reports Fourth Quarter and Fiscal Year 2016 Financial Results
5
Novartis' Ultibro® Breezhaler® improved lung function and COPD symptoms after direct switch from previous treatment

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2016   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
08 December 2016 22:01:17
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20161205.1 - EUROWEB1 - 2016-12-08 23:01:17 - 2016-12-08 22:01:17 - 1000 - Website: OKAY