To: Seeker of Truth who wrote (9984 ) 10/10/2006 11:41:20 AM From: elmatador Respond to of 218621 Brazil Real Rises on Optimism Alckmin May Overtake Lula in Poll By Adriana Brasileiro Oct. 10 (Bloomberg) -- Brazil's real rose to a three-week high on speculation presidential candidate Geraldo Alckmin, who favors lower taxes and spending cuts, may overtake President Luiz Inacio Lula da Silva in opinion polls in coming weeks. Alckmin, 53, a former governor of Sao Paulo state, may gain support as he convinces more voters he can spur economic growth and employment, while keeping spending in check, said Octavio Vaz at Questus Patrimonio. Lula failed to win re-election in the first round after Alckmin, who trailed by as much as 21 percentage points about a week before the Oct. 1 vote, narrowed the gap and finished just 7 percentage points behind Lula. ``After the election went to a second round, investors really started to believe Alckmin has a chance,'' Vaz, who helps manage about 70 million reais ($32.4 million), said in a phone interview. ``He is clearly the market favorite because he will probably have more support in Congress than Lula to lower taxes, boost investment and cut government spending.'' The real rose 0.3 percent to 2.1490 per dollar at 9:05 a.m. New York time from 2.1553 per dollar yesterday. The currency has gained 8.5 percent so far this year, the best performance among the 16 most-traded currencies tracked by Bloomberg. In the most recent poll published on Oct. 6, Lula led Alckmin with support of 54 percent of those surveyed, compared with 46 percent for Alckmin, according to the poll, conducted by the Datafolha polling agency on behalf of TV Globo. The poll of 5,811 voters, conducted Oct. 5-6, has a margin of error of plus or minus 2 percentage points.