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Brazil real loses ground on pre-weekend dlr buying

SAO PAULO: Brazil's real currency fell 0.3 percent to 1.745 per dollar Friday after holding steady to higher during the day as some operators purchased dollars for end-week book-squaring, traders said.

"At the end of the session some banks had to buy some dollars to balance their positions," said a trader with a big local bank.

The fall, which traders attributed also to low liquidity, came despite expectations of further strengthening of the real. The currency has gained around 3 percent so far this year and still remains at its nine-month high levels.

Traders and analysts said dollars should continue coming to the market via increasing borrowing by Brazilian companies and direct foreign investment in Brazil and some expected the strengthening of the national currency to renew next week.

One analyst said around $500 million should enter the market in the coming days after the weekend.-Reuters