20000108

Brazil's real ends 0.16 pct weaker at 1.842/dollar

SAO PAULO: Brazil's real currency ended 0.16 percent weaker on Thursday at 1.842 per dollar, as the market fretted about events overseas, traders said.

"The market continues to fear an increase in interest rates in the United States," one trader said. A US rate hike could lure much needed foreign dollars away from emerging markets.

The real closed at 1.839 per dollar on Wednesday after closely tracking events on Wall Street, but not even a brighter scenario there on Thursday could calm Brazilian markets.

The local currency came under pressure most of the day, despite some inflows registered early on, traders said.

The real had firmed at the end of last year following a handful of central bank measures in December aimed at bolstering it. The currency ended 1999 at 1.806, its strongest level in six months.-Reuters