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Brazil real closes tad firmer at 1.775/dlr

SAO PAULO: Brazil's real currency BRBY closed slightly ahead Wednesday at 1.775 per dollar after Tuesday's close of 1.777, thanks to positive dollar flows and a sale of dollar-pegged Central Bank notes, traders said.

"It was in the middle of the session when the dollar's fall was the most noticeable, just when investors were selling greenbacks to take part in the auction," said one trader.

The small rise in the real came despite continuing market fears that rising oil prices could hurt the currency by raising inflation.

The Central Bank sold 1.5 billion reais worth of its NBC-E dollar-indexed notes Wednesday. The notes normally help the real as they give investors alternative hedge against currency rate fluctuations.

Traders said the day's net dollar inflows totalled around $80 million, apparently stemming from direct investment in Brazil and foreign borrowing.-Reuters