RIO DE JANEIRO Nov 30 The Brazilian real closed
at its weakest in over 3-1/2 years on Friday after third-quarter
economic data disappointed economists, suggesting the government
may let the currency depreciate to prop up the economy.
The losses were exacerbated by investors trying to test the
central bank's tolerance to a weaker currency at a time of the
month when dollars are usually more scarce due to profit
remittances by Brazilian units of foreign companies.
The real ended 1.6 percent weaker at 2.1299 per
U.S. dollar. The currency also closed above the ceiling of an
informal trading band of 2.0-2.1 reais per dollar where it has
been stuck since early July.
The central bank's absence from the foreign exchange market
this session suggested that informal trading range was moving to
accommodate a weaker currency, which could boost exports.