SAO PAULO/RIO DE JANEIRO, Nov 11 (Reuters) – Brazil’s high
and rising interest rates are likely to keep attracting bond
investors next year despite the country’s struggle with a
deteriorating budget, high inflation and low growth.
Foreign investors have snatched up a heavy $6 billion worth
of Brazilian debt per month, on average, since policymakers
removed some capital controls in June and the U.S. Federal
Reserve signaled it would take time to wind down its bond-buying
program, which has boosted demand for emerging-market assets.
RIO DE JANEIRO (Reuters) – Standard & Poor’s said on Wednesday it could wait until Brazil’s presidential elections late in 2014 to decide whether to cut the credit rating of Latin America’s largest economy.
Allaying fears that Brazil could lose its BBB rating early next year, S&P’s analyst Lisa Schineller said the firm may want to “see through the elections” to resolve the negative credit outlook it assigned to Brazil in July.
RIO DE JANEIRO, Oct 18 (Reuters) – Brazil’s economic debate
is heating up after three former central bankers this week
criticized the economic policies of President Dilma Rousseff,
saying she is making Latin America’s biggest economy less
efficient and more sluggish.
The warnings from Gustavo Franco, Arminio Fraga and Henrique
Meirelles, who in that order headed the nation’s central bank
from August 1997 through 2010, come as political parties begin
sparring ahead of next year’s presidential elections.
SAO PAULO/RIO DE JANEIRO, Oct 18 (Reuters) – After betting
for most of the year that Brazilian stocks would continue to
tank, some investors are now cautiously looking for
opportunities to buy into a market that might have just become
But calls to deploy money into Brazilian shares still lack
conviction. For now, analysts are recommending that investors
hunt for bargains or cherry-pick shares in companies that could
benefit from an expected rebound in emerging markets.
RIO DE JANEIRO, Sept 4 (Reuters) – Brazil’s central bank has
so far kept the door closed on its vault of $370 billion in
foreign reserves, but may need to open it in the next few months
if investors continue to lose faith in the country’s
On Aug. 22, Brazil unveiled a $60 billion plan to defend its
currency against a broad sell-off of emerging-market assets. The
initiative relies on sales of derivatives, meaning the bank can
satisfy market demand for dollars without actually having to
sell any hard currency from its reserves.
SAO PAULO, Aug 23 (Reuters) – Brazil’s real rallied more
than 1 percent early on Friday after the central bank unveiled a
currency intervention program that will provide $60 billion
worth of cash and currency hedges to the foreign exchange market
by year end.
The plan, announced after markets closed on Thursday, was
seen by analysts as a bold central bank move to give credibility
to its currency intervention policy, which had failed to stop
the real from slumping to near five-year lows in the past few
RIO DE JANEIRO (Reuters) – Given his checkered record so far, investors could be forgiven for thinking that Brazil’s quiet, bespectacled central bank chief Alexandre Tombini is a pushover on inflation.
Since Tombini took the job in early 2011, annual inflation has often hovered above 6 percent, dangerously close to the top of the bank’s target range. An unexpected spurt in prices this year scared consumers, smothered the economy and contributed to a wave of massive protests against President Dilma Rousseff’s government.
RIO DE JANEIRO, Aug 23 (Reuters) – Given his checkered
record so far, investors could be forgiven for thinking that
Brazil’s quiet, bespectacled central bank chief Alexandre
Tombini is a pushover on inflation.
Since Tombini took the job in early 2011, annual inflation
has often hovered above 6 percent, dangerously close to the top
of the bank’s target range. An unexpected spurt in prices this
year scared consumers, smothered the economy and contributed to
a wave of massive protests against President Dilma Rousseff’s
RIO DE JANEIRO/BRASILIA (Reuters) – Brazil’s real weakened for a sixth straight session on Monday even as the central bank and the Treasury joined forces to stem a rout in currency and bond markets that has added to inflation fears in Latin America’s largest economy.
Worried that policymakers may have to step up their monetary tightening campaign against inflation, investors pushed interest-rate futures sharply higher while dumping locally-issued government bonds. (See table below)
MUMBAI/RIO DE JANEIRO (Reuters) – The Indian rupee plummeted to a record low against the dollar on Monday, leading a rout by Brazil’s real and other emerging market currencies seen by investors as the most vulnerable to an exodus of foreign capital.
A fierce selloff in many emerging currencies shows no sign of abating as the expected withdrawal of U.S. monetary stimulus prompts investors to shun markets seen as riskier because of funding deficits, slowing economies and inflation.