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Brazil real recovers, ends flat on Greenspan

SAO PAULO: The Brazilian real recovered Wednesday from its midday dip to end little changed on relief after the U.S. Federal Reserve chairman merely repeated rates comments that he had made before, traders said.

The real closed the day's session at 1.784, a tad firmer than Tuesday's close of 1.786 per dollar.

"Some banks ended up undoing their buy positions and had to sell dollars," said a trader. He added that liquidity was tight but enough to move the real in the late session.

Fed chairman Alan Greenspan on Wednesday hammered home his message that the U.S. economy is growing too fast, signalling he will continue to raise interest rates to slow it, but the comments relieved some traders.

"He did not say anything bombastic. Everything he said the market already knew," said a trader from a foreign bank, explaining why the real rallied this afternoon. -Reuters