Brazil's real slips as mkts seen losing $400 mln
Reuters, Wednesday, October 14, 1998 at 15:29
SAO PAULO, Oct 14 (Reuters) - Brazil's currency closed
slightly weaker against the dollar on expectations that another
$400 million will leave the country's foreign exchange markets
on Wednesday, traders said.
The real slipped 0.04 percent to 1.1880 to the dollar in
the commercial forex market.
Brazil was seen losing another $400 million through its
forex markets, up from initial expectations of $300 million,
traders said.
Investors have yanked some $30 billion out of Brazil's
forex markets since the beginning of August after Russia
devalued its currency, draining Brazil's reserves and putting
pressure on the government to devalue its currency.
A sharp increase in interest rates helped slow the capital
flight but failed to stop it.
As of 1715 local/1915 GMT, some $150 million had left
Brazil's commercial forex markets, according to the Central
Bank, while another $70 million had left through the floating
market, traders said.
The real weakened 0.08 percent in the floating market to
1.1805 reais against the dollar and it was unchanged in the
parallel market at 1.300 reais to the dollar.
Copyright 1998, Reuters News Service |
