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Brazil's real ends weaker still vexed by US rates

SAO PAULO: Brazil's real currency BRBY ended weaker Tuesday with investors still nervous that rising U.S. interest rates could hurt emerging markets, traders said.

The real reversed its two-day strengthening trend and finished at 1.823 per dollar, or 0.44 percent weaker from its previous close.

"Banks sought dollars today, in part to balance their coffers and in part due to lingering worries over U.S. interest rates," said one local trader.

Markets are concerned that higher U.S. interest rates could limit foreign capital inflows into Latin America's biggest economy and eventually lead to a weaker local currency.

The real had been hard hit early last week when fears about possible U.S. credit tightening started roiling global financial markets.

The Brazilian currency had weakened to 1.850 per dollar on Tuesday, but started recovering somewhat by the end of last week on optimistic views over the local economy.-Reuters