Brazil Property News: Brazil's currency 'at strongest level since 1999'




27th February 2008 04:26


Those buying property in Brazil may be pleased to hear that the country's currency has risen to its strongest level since May 1999.

After inflows from investors seeking high-returns on Brazil's domestic interest rates, stock firms have confirmed the real's surge.

Julio Cesar Vogeler, a currency trader at the Didier Levy brokerage, told Reuters: "Everyone is coming here… There is a lot of confidence in the Brazilian economy."

Compared to the US dollar, the real has already surged by 5.5 per cent this year, adding to its significant 20 per cent gain during 2007.

Brazil also has the world's highest benchmark lending rate of 11.25 per cent, which analysts say has lured funds away from countries such as Japan.

Earlier this month, a senior manager of the Blackrock Latin American Investment Trust, Will Landing, described Brazil as "leading the Latin American surge", reports Trustnet.com.

He commented that Brazil's exports are being fuelled by China's growing demand for agricultural and mineral commodities.

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