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Brazil real ends a bit stronger as Wall St steady

SAO PAULO: Brazil's currency, the real, recouped its losses against the dollar to close a bit stronger on Thursday after stock prices in New York stabilised, traders said.

The real closed at 1.767 per dollar from 1.769 on Wednesday. It had opened weaker at 1.775 after shares dropped Wednesday sharply in New York.

"Even with the Dow Jones swinging a bit, the market was calmer," said one local forex trader.

After the Dow Jones industrial average lost 258 points on Wednesday, the US blue-chip gauge fluctuated Thursday between a small gain and a small loss.

Local markets worried that Wednesday's decline on Wall Street was linked to fears of a further increase in interest rates in the United States, which would draw money away from emerging markets like Brazil.

Traders estimate that Brazil had a net inflow of $60 million on its foreign exchange market Thursday. -Reuters