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Brazil's real ends firmer on capital inflows

SAO PAULO: Brazil's real currency closed firmer Tuesday, buoyed by a steady stream of dollar inflows and on expectations that more US currency would be in the pipeline, traders said.

The real finished at 1.766 per dollar, 0.17 percent stronger from its previous close of 1.769.

"The size of capital inflows was encouraging," said one local trader, who predicted a net $120 million had flowed in.

Markets started betting on more capital inflows after the National Development Bank (BNDES) announced a bond issue of 200 million euros Tuesday.

The Brazilian unit of ABN AMRO bank had also offered $150 million in eurobonds on Monday.

Traders said investor confidence was steadily returning to Brazil, allowing local firms to raise more from global capital markets.

The National Statistics Institute (IBGE) had reported earlier Tuesday Brazil's gross domestic product (GDP) in 1999 grew 0.82 percent, up from 0.12 percent in 1998, as the economy rebounded faster than expected from last year's steep currency devaluation.

At Tuesday's closing level, the real was still 31.6 percent weaker compared with its pre-devaluation level.-Reuters