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
03 May
 
Den i mange år oversete amerikanske økonom Hyman Minsky døde i 1996 lige inden han for alvor skulle ..
21
01 May
OMXC20
Pengemængden er en funktion af antallet af penge gange disses cirkulationshastighed. Hvis vi har mas..
21
05 May
VWS
idiot !!
19
03 May
 
Der er ingen der kan spå om fremtiden, men hver investor har sin holdning og risikoprofil.   Hvis du..
19
02 May
VWS
MENA det hjælper jo ikke en lilleput aktionær som mig at hedgefondene sidder med en masse viden omkr..
18
30 Apr
VWS
Vestas har modtaget en fast og ubetinget ordre i Nebraska, USA, på 200 stk. V110-2.0 MW-møller, svar..
15
30 Apr
VWS
Bearshire's energy afd har lige afgivet en ordre på 400 må til Vestas. Det er da Inter medmindre en..
15
30 Apr
EXQ
I forbindelse med den omtale, der har været i pressen om et muligt dansk DNA-register, har jeg still..
14
05 May
FING-B
Herunder de sandsynlige senarier for Fingerprint Cards de nærmeste år, beregnet af den respekterede ..
12
02 May
VWS
Du skrevden anden dag at du holdt dig ude indtil Vestas var flade de 20-30% der skulle til, for at d..
12

Form 8.3 - AXA INVESTMENT MANAGERS S.A.: BG Group Plc

06/05/2015 14:56:30
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

Form 8.3 - Synergy Health Plc

06/05/2015 13:09:46
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE ..

Form 8.3 - Greene King Plc

06/05/2015 10:51:24
FORM 8.3 OPENING POSITION / DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
CREDIT AGRICOLE SA : First quarter 2015 - Good results driven by buoyant activity and favourable market conditions
2
REC Silicon ASA's first quarter 2015 results
3
Norwegian Energy company Skagerak Nett chooses Ericsson for smart metering solution
4
SOCIETE GENERALE: FRIST QUARTER RESULTS
5
Group BPCE: Q1-15 results

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2015   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.
 
07 May 2015 03:39:21
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20150505.2 - EUROWEB4 - 2015-05-07 04:39:21 - 2015-05-07 03:39:21 - 1000 - Website: OKAY