Brazilian stocks rose on the heels of buying in New York Friday, while the local currency strengthened as futures contracts moved sharply and pointed toward a stronger real.
The real strengthened 0.7 percent to 2.84 reais per US dollar. Volume was low, but the currency moved on a sharp change in futures contracts as some Brazilian banks tried to cover positions taken last week, when they wrongly bet the central bank would intervene to weaken the real.
The real ended at its strongest level since January 22. While a strong real can hurt exports, it also cuts inflationary pressures the government is trying to avoid.
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