Brazilian currency up

26 Jun, 2005

Brazil's currency ended higher on Friday as investors took a breather after a series of losses inspired by local political woes and high oil prices. Brazil's currency, the real, gained 0.75 percent to 2.381 per dollar after weakening during the past two days. Dollars coming from exports and, more recently, from companies issuing debt abroad are helping the real to firm, currency traders said.
They added that political turbulence abated slightly on Friday because investors have yet to see any conclusions from a parliamentary probe of allegations of government corruption.
Such accusations emerged three weeks ago when a government coalition partner accused the ruling Workers' Party, or PT, of bribing congressmen in exchange for support of its policies.
"After all those allegations, things remain the same and we see banks and companies issuing (debt) abroad," said Mario Battistel, director of currency trading at Novacao brokerage.

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