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Brazil's real firms as bond issue brings inflows

SAO PAULO: The Brazilian real ended 0.2 percent firmer on Friday amid capital flows from a foreign bond issue and relief that a fuel price increase was smaller than expected, easing inflation concerns, traders said.

The real closed trading at 1.774 per dollar against Thursday's close of 1.778 per dollar. The currency strengthened 3 percent over the week.

Friday's gains were directly attributed to the entrance of a $250 million from a Eurobond issue by Brazil's National Development Bank, or BNDES.

"It is almost certain that the BNDES has completed the exchange operation today," a trader said.

The real's firmness also reflected the announcement of a smaller-than-expected 7 percent increase in fuel oil prices at refineries starting March 1, traders said. The market had been concerned that steeper price increases could have triggered an accelerating inflation.-Reuters