Brazil’s Real Opens Slightly Weaker on Inflation Data, ECB Meeting

Jeff Fick – The Wall Street Journal, 02/07/2013

–Rolling 12-month inflation rate at 6.15% in January, above government target

–Global currency markets also await comments from ECB President Mario Draghi

–Brazilian real opens at BRL1.9874, weaker from Wednesday’s close at BRL1.9861

The Brazilian real opened slightly weaker against the U.S. dollar Thursday as inflation in Latin America’s largest economy posted its strongest advance in nearly eight years in January, although reaction is expected to be muted as the country prepares for the Carnival holiday.

The local currency failed to track overseas gains by the euro, seen as a key barometer for the real, ahead of a meeting of the European Central Bank and much-anticipated comments by ECB President Mario Draghi. The real opened trading at BRL1.9874 to the dollar, weaker from Wednesday’s closing price fix at BRL1.9861, according to Tullett Prebon via FactSet.

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