Brazil forex mkts lost $191 mln Wednesday--traders
Reuters, Thursday, October 08, 1998 at 08:51
SAO PAULO, Oct 8 (Reuters) - Brazilian forex markets
returned to posting net outflows on Wednesday, losing a net
$191 million, dealers said.
The outflows -- $67 million from the commercial forex
market and $124 million from the floating market -- depressed
market players, who were expecting a net inflow for the second
straight day. Net inflows totaled $101 million on Tuesday.
The outflows pressured the local currency, the real, at the
opening on Thursday. It weakened 0.13 percent from its previous
close to 1.1840 per dollar, dealers said.
Wednesday's outflows showed that a wave of dollar flight
from Brazil's currency markets -- which began after Russia
defaulted on its foreign debts and devalued its currency --
continued, though at a moderate pace.
Some $29 billion had escaped Brazil's forex markets since
the beginning of August, eating away at the country's foreign
currency reserves.
Copyright 1998, Reuters News Service |
