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Brazil scrambles to support the Real; as Dilma recovers in the polls the currency falls

Thursday, September 25th 2014 - 03:14 UTC
Full article 3 comments
“The Real is facing strong downward pressure as Rousseff rises in the polls.” “The Real is facing strong downward pressure as Rousseff rises in the polls.”

Brazil’s Real advanced from a seven-month low as the central bank signaled it will maintain support for the currency when it increased the number of foreign-exchange swap contracts offered in a rollover.

The currency climbed 0.2% to 2.4062 per U.S. dollar in Sao Paulo on Wednesday after falling on Tuesday to 2.4120, the weakest level since Feb. 12.

Even when the central bank said it was raising the number of contracts offered in Wedneday’s rollover auction to 15,000 contracts from 6,000, Real has fallen 6.8% in September on concern Brazil will struggle to recover from its first recession since 2009 as polls before the Oct. 5 election showed increased support for President Dilma Rousseff.

“The central bank’s action will support the currency today (Wednesday), at least at the beginning of the day,” anticipated Joao Paulo de Gracia Correa, a trader at Correparti Corretora de Cambio in Curitiba, Brazil

“The Real is facing strong downward pressure as Rousseff rises in the polls.”

A Vox Populi poll published this week showed Rousseff would defeat Marina Silva in a probable runoff while other surveys showed the race remained too close to call.

The incumbent’s backing in the recent Vox Populi poll increased to 46% for an Oct. 26 second-round vote, up from 41% in the last survey published Sept. 15. Silva’s support fell to 39% from 42%, according to the poll published by the R7 website. The Sept. 20-21 poll, which had a margin of error of 2.2 percentage points, surveyed 2,000 people.
 

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  • ChrisR

    If the rest of the Brazilian working class are as stupid as Brasso they won’t even understand that there is a problem.

    That is the reality of the situation.

    Sep 25th, 2014 - 01:31 pm 0
  • cornelius

    Poor Brazil condemn to mediocrity and socialism for ever brazil is doomed!

    Sep 26th, 2014 - 12:06 am 0
  • BOTINHO

    The 5th of October is almost upon us. Slightly over a week away.

    Candidate Marina Silva is most talked about of all.

    President Dilma is scrambling around and try to make points with an unclear message of “ It will be better for all of you during my next term in office. ”

    If the foto shown in this article is an example of how she is running her campaign image, it will serve to excite no one except the corrective dental surgery population.

    Sep 26th, 2014 - 03:00 pm 0
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