CORRECTED-Brazil real opens sharply higher as investors test central bank

Fri Feb 8, 2013 6:49am EST

(Corrects story to say real was strengthening, not weakening)

RIO DE JANEIRO Feb 8 (Reuters) - Brazil's currency, the real , opened sharply higher on Friday as investors tested the central bank's tolerance to a stronger currency.

It jumped over 1 percent against the dollar in the first minute of trade before slightly paring gains to last trade at 1.9518 per dollar, 0.9 percent stronger than Thursday's close.

In the Thursday session, the real gained 0.8 percent.

Bets that the government would resort to a stronger real to cheapen the price of imported goods increased on Thursday after central bank president Alexandre Tombini said the bank is not comfortable with inflation in the short term. (Reporting by Walter Brandimarte Editing by W Simon)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.