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Brazil's real ends weaker, depressed by stock dips

SAO PAULO: The Brazilian real finished weaker on Wednesday, depressed by dropping stock prices both at home and in New York, traders said.

The real ended at 1.769 per dollar, 0.17 percent weaker from its previous close. The currency had been expected to continue on a strengthening trend Wednesday, boosted by hopes of more capital inflows.

"The fall in the real was not that significant, when compared with the slides seen in the bourse," said one local trader.

The Sao Paulo Stock Exchange's leading stock index Bovespa .BVSP was down 1.7 percent while the Dow Jones industrial average .DJI was down 1.5 percent by the time the Brazilian currency market closed.

Traders in the foreign exchange market said they were discouraged by the reason behind the U.S. stock falls, which was linked to worries over the Federal Reserve hiking rates.

Any sign of higher U.S. rates brings back fears investment might flee from emerging markets and go to U.S. Treasuries.-Reuters