Brazilian Real Gains as Risk Appetite Increases

The Brazilian real rose today as the speculation that Ireland would receive the aid improved the traders’ risk appetite and increased the demand for the higher-yielding markets.

Previously the real was declining as the concerns for the European debt problems damped demand for the currencies of the emerging-markets nations. Now, as the concerns somewhat receded the investors, interested in so-called carry trade, may be drawn to Brazil with its high interest rates. Brazil’s benchmark lending rate is 10.75 percent.

USD/BRL fell from 1.7370 to 1.7140 as of 11:41 GMT today.

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