Brazilian Real Rebounds on Commodities

The Brazilian high-yielding currency, declined for almost a week as concerns regarding the global rose, but today it rebounded as commodities rallied, spurring demand for the South American country’s currency.

The Brazilian real had favorable news that supported the currency to post its first gains versus all majors in a week, as car sales in China rose the most since 2006, fueling demand for high-yielding assets. Metallic commodities rebounded today, mainly the copper, after Alcoa Inc. posted smaller losses than forecasts, indicating that demand for commodities may be recovering, a sign that can be interpreted as a global recession easing indication.

USD/BRL traded at 1.9910 as of 19:29 GMT from a previous rate of 2.0175 in the intraday chart.

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