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Brazilian Real Gains Sharply on Risk Demand

November 7, 2009 at 16:03 by Jan Baros

Brazilian RealThe Brazilian real had one of the best weeks in more than 2 months as demand for commodities and emergent markets assets rose globally, maintaining the real as the best performing currency in 2009 among the 16 main traded ones in foreign-exchange markets.

The real extended its gains this week flirting with the $1.70 level as risk appetite was strong during most of the previous 5 days, even if rising speculations that the national central bank will impose further measures to control the currency’s rally, following the implementation of a new tax for foreign capital invested in Brazilian stocks created last month.

USD/BRL closed the week 1.7193 from 1.7650 in the beginning of the week.

If you have any questions, comments or opinions regarding the Brazilian Real, feel free to post them using the commentary form below.

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