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Brazil real closes nearly flat at 1.737/dlr

SAO PAULO: The Brazilian real <BRBY> finished virtually unchanged at 1.737 per dollar on Monday in quiet trading in which dollar inflows prevailed, traders said.

"(Dollar) flow was very weak, as was trading volume today," said a trader with a big local bank.

On Friday, the real closed at 1.739 per dollar. Traders estimated the day's net dollar inflows at some $60 million, blaming uncertainty over US interest rates for low volumes.

The US Federal Reserve is to decide on interest rates in the world's biggest economy on Tuesday. Higher US rates could damage emerging economies like Brazil by siphoning investors' cash into safer US securities.

"As long as questions remain about US rates, operations will be becoming smaller, naturally," said another trader, from a big foreign bank in Sao Paulo.

The currency has been trading at around its nine-month high for a few weeks now, after receiving a boost from Brazil's economic growth, low inflation and foreign borrowing by thegovernment and companies.ÑReuters