13 September 2010

BRASIL: Real's Surge Fuels Speculation Of Big USD Buy.

BLOOMBERG/ Ye Xie and Andre Soliani:     "Brazil is stepping up efforts to stem a three-month currency rally as a planned $32 billion share offering by state-run Petroleo Brasileiro SA drives the real to the strongest level since December.
      Finance Minister Guido Mantega (Pictured) told investors in a Sept. 9 speech that he wouldn’t “allow” the real to keep gaining as central bank traders boosted dollar purchases in the foreign- exchange market."
     AND: “Policy makers are sending signals that they are ready to increase ammunition,” said David Beker, who heads Latin America strategy at Bank of America in New York. “There are signs that they are not happy with what’s going on.”
       The real hit a nine-month high of 1.7137 per usd today.