20000326

Brazil's real ends weaker on Cenbank intervention

SAO PAULO: The Brazilian real BRBY ended trading Friday markedly weaker against the dollar after the Central Bank intervened on the foreign exchange market, buying dollars, traders said.

After opening trading notably stronger at around 1.714 per dollar, the real closed the session at 1.734, 0.7 percent weaker than its closing rate on Thursday.

The real had been trading most of the week at its strongest against the dollar since May, boosted by capital inflows linked to foreign direct investment. It ended 0.3 percent stronger on the week

"The purchase of dollars made this morning by the Central Bank was sufficient to hold the price of the dollar higher the rest of the day," a trader at a local bank said.

The Central Bank confirmed after the market's close that it intervened on the local currency market, thought it did not specify whether it bought or sold dollars.

Excluding the Central Bank's operation on the market, analysts said there should be a strong net inflow of dollars by the end of the day. They added that traders are expecting a net inflow of $400 million.

"The deals were basically from direct foreign investments, especially in the telecommunication sector," a trader at a local bank said.-Reuters