RIO DE JANEIRO Dec 5 Brazil's real strengthened
early on Wednesday after the government reduced the scope of a
financial transaction tax on foreign loans, facilitating dollar
inflows to the country.
The real gained 0.5 percent to 2.1058 per
dollar after the government said only foreign loans of up to one
year will keep paying the so-called IOF tax, which remains
unchanged at 6 percent. Previously, the tax was levied on loans
of up to two years.
In a strategy to curb the real's recent depreciation trend,
Brazilian policymakers have been reversing in the past few days
a series of measures aimed at capping capital inflows to the