SAO PAULO--With little volume due to the U.S. holiday, Brazil's real opened slightly stronger against the dollar Monday, recouping the previous trading day's losses.
The real opened at BRL2.0401 to the dollar, according to Tullett Prebon via FactSet, stronger than Friday's close at BRL2.0427 and near Thursday's level of BRL2.0403 to the dollar.
With U.S. markets closed for the Martin Luther King Jr. holiday, volumes Monday were limited in a market that has already seen trading volumes drop, as investors see little room for the currency to move with the central bank active in containing strength and weakness in the real.
The currency has been trading for about nine months between BRL2 and BRL2.05 to the dollar, as the central bank steps in to spot and futures markets whenever the rate varies too widely from that range.
With that, investors seemed to brush off news that inflation expectations continue to worsen in Latin America's biggest economy.
In a weekly central-bank survey of economists published Monday, inflation is expected to end this year at 5.65%, up from the inflation forecast of 5.53% in the previous survey.
Growth expectations, meanwhile, continue to deteriorate, with GDP expected to expand 3.19% this year, down slightly from a forecast of 3.2% last week.
Earlier Monday, the private-sector Getulio Vargas Foundation said Brazil's general price index, known as the IGP-M, rose 0.34% between Dec. 21 and Jan. 10, slowing from a 0.69% increase between Nov. 21 and Dec. 10.
The latest figure was in line with analysts' expectations for an increase of between 0.28% and 0.48%.
nasdaq.com
The real opened at BRL2.0401 to the dollar, according to Tullett Prebon via FactSet, stronger than Friday's close at BRL2.0427 and near Thursday's level of BRL2.0403 to the dollar.
With U.S. markets closed for the Martin Luther King Jr. holiday, volumes Monday were limited in a market that has already seen trading volumes drop, as investors see little room for the currency to move with the central bank active in containing strength and weakness in the real.
The currency has been trading for about nine months between BRL2 and BRL2.05 to the dollar, as the central bank steps in to spot and futures markets whenever the rate varies too widely from that range.
With that, investors seemed to brush off news that inflation expectations continue to worsen in Latin America's biggest economy.
In a weekly central-bank survey of economists published Monday, inflation is expected to end this year at 5.65%, up from the inflation forecast of 5.53% in the previous survey.
Growth expectations, meanwhile, continue to deteriorate, with GDP expected to expand 3.19% this year, down slightly from a forecast of 3.2% last week.
Earlier Monday, the private-sector Getulio Vargas Foundation said Brazil's general price index, known as the IGP-M, rose 0.34% between Dec. 21 and Jan. 10, slowing from a 0.69% increase between Nov. 21 and Dec. 10.
The latest figure was in line with analysts' expectations for an increase of between 0.28% and 0.48%.
nasdaq.com
No comments:
Post a Comment