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Brazil's real loses gains vs dlr as Dow declines

SAO PAULO: The Brazilian real lost morning gains against the dollar and closed slightly weaker as a new downturn in US stock prices made the foreign exchange market skittish, traders said.

Traders also said there was some late dollar buying by companies to meet foreign obligations.

The real closed at 1.769 per dollar, weaker than the 1.767 close on Thursday, after opening firmer at 1.764.

Brazil's forex players have tuned in to the fluctuations in the Dow Jones industrial average this week. Investors would buy dollars when the Dow dropped, which they associated with nervousness over US interest rates.

Higher US interest rates would draw investments from emerging markets like Brazil and put pressure on the local currency.

But despite worries over the Dow, the real continued to trade in a tight range this week, with closing rates between 1.766 and 1.769.-Reuters