Brazil currency rises to strongest level in a year
Brazilian real estate owners have been boosted by the news that the country’s currency has risen to its strongest rate in more than a year.
A statement from the G7 leaders lacked support to stem the dollar’s slide against major currencies, which has prompted investors to buy higher-yielding assets.
The G7 met last week to signal its concern at a weakening dollar which has dropped 13 per cent against other major currencies since March 2009.
Brazil’s economy has continued to rally after coming through the recession, with the real extending gains after posting a weekly trade surplus of £260 million, reversing two weeks of trade deficits.
Property owners in Brazil saw investment flows bolstered earlier this week with the news that Banco Santander’s local stock offer is planning to raise up to £4.5 billion.
The Brazilian unit of Santander has emerged as one of the most profitable parts of the company, accounting for 20 per cent of its net income during the first half of 2009.
