Brazil real rises

Brazil's currency strengthened Friday after the central bank unexpectedly raised interest rates on Wednesday, while stocks returned from a one-day break to catch up with a Wall Street rally. The central bank surprised many economists when it hiked its hiked its benchmark Selic rate to 19.5 percent a year from 19.25 percent to curb inflation. Some analysts say inflation is already under control and that the hike was unnecessary.
Brazil's currency, the real strengthened 0.78 percent to 2.542 reais as analysts said the decision to raise the country's benchmark Selic rate should help maintain the positive flow of dollars into the country.