Brazil real weakens in thin trade

BRASILIA: Brazil's real weakened slightly against the dollar in thin pre-holiday trade on Monday during a shortened three-hour trading session whose tone reflected caution over the US "fiscal cliff."

The real ended 0.24 percent lower at 2.0783 reais per dollar.

"Liquidity was very low today. Anyone who wanted to buy (dollars) to adjust their positions had to find someone willing to sell," said Gustavo Godoy, manager at the Banco Daycoval bank.

Markets have been left in limbo after President Barack Obama and US lawmakers suspended talks until after Christmas on how to avoid $600 billion of spending cuts and tax increases that threaten to send the US economy back into recession.

Center>Copyright Reuters, 2012