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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (9818)	11/18/1998 3:12:00 PM
From: Steve Fancy	Respond to of 22640

Brazil forex mkts lost net $200 mln Weds --traders Reuters, Wednesday, November 18, 1998 at 14:44 SAO PAULO, Nov 18 (Reuters) - Brazil lost an estimated net $200 million from its foreign exchange markets on Wednesday, returning to post net outflows and causing the local currency to weaken against the dollar, traders said. By 1700 local/1900 gmt, Brazil's commercial and floating forex markets reported a net outflow of $50 million, but traders expected the outflow to grow by the end of the day. The outflow, which compared with a net inflow of $10 million on Tuesday, forced the real to weaken 0.22 percent against the U.S. currency to finish at 1.1930 in the commercial currency market. The real also weakened 0.13 percent against the dollar in the floating market, closing at 1.1990. In the parallel market, the real ended unchanged at 1.240 per dollar. Some traders attributed Wednesday's net dollar outflow to a pre-programed forex operation by a Brazilian exporter. Capital flight from Brazil's currency markets has been overall slowing, with a cumulative net outflow of $714 million reported so far this month. That compared with a cumulative net outflow of more than $30 billion between August and October. The massive wave of dollar outflows, which was triggered by Russia's currency devaluation in mid-August, was receding after the government announced a fiscal austerity package to save or raise $84 billion over the next three years. Brazilian financial markets regained further confidence after the International Monetary Fund put together a $41.5 billion credit line for Latin America's largest economy last Friday. noriko.yamaguchi@reuters.com)) Copyright 1998, Reuters News Service