Brazil real rises from three-week low

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BrazilReal

Reuters.

The new Brazilian 20 and 10 real bills are displayed at Brazil's Central Bank headquarters in Brasilia.

Sao Paulo - Brazil’s real rose from a three-week low as eased tension in Ukraine following the nation’s presidential election added to demand for higher-yielding assets in emerging markets.

The real advanced 0.1 percent to 2.2217 per dollar at 10:28 a.m. in Sao Paulo after declining last week to 2.2233, the weakest level on a closing basis since May 6.

Swap rates on contracts maturing in January 2016 dropped two basis points, or 0.02 percentage point, to 11.52 percent.

US markets are closed today for a holiday.

Developing-nation currencies including the real climbed after billionaire Petro Poroshenko won Ukraine’s presidential election and following Russian President Vladimir Putin pledge to work with the victor.

In Brazil, the real has climbed 6.3 percent this year partly on speculation President Dilma Rousseff will face a runoff following October’s vote after overseeing stalled economic growth.

“The real is benefiting from the good sentiment toward emerging markets prevailing after the positive outcome of Ukraine’s election,” Andre Perfeito, the chief economist at Gradual Investimentos in Sao Paulo, said in a telephone interview.

“The holiday in the US should slow activity in the currency market today.” - Bloomberg News


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