Brazil real weakens 1 pct after central bank rate hike

RIO DE JANEIRO, April 18 Thu Apr 18, 2013 11:43am EDT

RIO DE JANEIRO, April 18 (Reuters) - The Brazilian real weakened 1 percent on Thursday after the central bank raised the benchmark Selic rate by 25 basis points, half what investors had priced in.

The real dropped to 2.0185 per dollar as investors braced for a mild monetary tightening cycle that will likely attract less dollars to the country than they had imagined.