SAO PAULO: Brazil's real strengthened slightly against the dollar on Tuesday after falling sharply the previous day, though traders remained cautious about markets in China, Brazil's top trading partner.
Mexico's peso was nearly unchanged, bidding at 17.3 per dollar while Chile's peso gained 0.4 percent, helped by a rebound in the price of copper, the country's main export.
Though gaining, the real failed to strengthen beyond the 4 per dollar mark. Investors are also worried about the government's ability to steer Latin America's largest economy out of its worst recession in at least 25 years.
"A lot of exporters took advantage of this rate to sell (reais)," said Jefferson Luiz Rugik, a currency trader at Correparti Corretora.
He said China's injection of nearly $20 billion into markets brought some relief but likely not enough to eliminate concerns.
Despite the intervention, Chinese shares listed in Shanghai and Shenzhen ended little changed on Tuesday and the yuan fell to a new 4-1/2 year low in offshore trade.
Brazilian stocks rebounded, rising 0.9 percent after falling for four consecutive days. Continued gains are not expected due to the absence of good domestic news and concern over China, analysts said.
"The normal movement would be a continual downward trend," said Raphael Figueredo of Clear Corretora brokerage.
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