Brazil stocks extend losses on forex rumors
Reuters, Tuesday, October 27, 1998 at 12:39
SAO PAULO, Oct 27 (Reuters) - Stocks extended losses this
afternoon on rumors in New York, denied by Brazil's central
bank, that the country may be considering a devaluation,
traders said.
"It took a while, but the rumor made it to Brazil and ended
up injecting nervousness in the markets," a trader at a local
brokerage said. "Ironically it hit the foreign exchange and
interest rate markets last."
Sao Paulo's key Bovespa (INDEX:$BVSP.X) tumbled more than 3 percent
before recovering to a 1.21 percent loss at 6,887 points.
The fact that Brazil plans to present its fiscal plan
tonight helped fuel rumors, traders said.
Copyright 1998, Reuters News Service |
