Brazil real drops 1pc on risk aversion, month-end speculation

RIO DE JANEIRO: The Brazilian real dropped over 1 percent on Friday on global aversion to risk and speculation by dollar-heavy investors who wanted to weaken the currency until the central bank sets its Ptax monthly exchange reference rate.

The real last traded at 2.1411 per US dollar, 1.4 percent weaker for the day.

Some analysts warned that pressure on the currency could diminish in the afternoon after the central bank sets the month-end Ptax, a benchmark exchange rate for a broad range of contracts, including foreign loans, trade, and derivatives.