Brazil's real opens stable at 1.647/dlr - traders
Reuters, Tuesday, May 11, 1999 at 09:09
SAO PAULO, May 11 (Reuters) - The Brazilian real <BRBY>
opened at 1.647 per dollar offer, stable compared with Monday's
close of 1.648, traders said.
The currency had firmed 0.8 percent on Monday helped by
foreign investment flowing into the local stock market, traders
said.
Market players predicted the real would strengthen during
the course of the day due to more dollar inflows.
"The dollar should weaken, copying Monday's trend, due to
more cash entering the country," said one local trader.
Meanwhile, financial markets on Tuesday were watching out
for the Treasury's auction of 182-day fixed rate LTN bonds
later in the day.
Tuesday's sale was expected to be the first with a maturity
of six months since the Russian crisis last August. Since then
and through last week, the longest maturity for the LTN bond
was three months.
Traders were keen to see the demand in the longer term
bonds to confirm whether investor confidence was returning to
Brazil following mid-January's wrenching devaluation of the
long-steady real.
saopaulo.newsroom@reuters.com))
Copyright 1999, Reuters News Service
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