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Brazil's real ends bit firmer on global bond issue

SAO PAULO: Brazil's real currency ended a bit firmer on Wednesday after investors cheered the government's sale of $1 billion in 20-year global bonds, traders said.

The real closed at 1.792 per dollar, extending its three-day rally which took the Brazilian currency to its six-month high on Monday. Wednesday's finish was 0.06 percent firmer compared to its previous close.

Sentiment in the market was boosted after the government managed to sell the bonds just one week after launching 750 million euros in 10-year bonds.

News that Duff & Phelps Credit Rating Co. (DCR) upgraded Brazil's local currency debt rating to B from B-, which was unveiled soon after the bond issue, also buoyed the real.

"The market's performance was due to optimism following news on the bond issue and D&P rating," said one trader at a foreign bank.

The bond issue also helped Brazil's Brady bonds traded in New York, which rebounded from morning lows. The benchmark C bond was up 0.25 at 72.75 by the time the Brazilian currency market closed.

Brazil's real is still recovering from its devaluation one year ago. It is 32.5 percent weaker compared to its pre-devaluation level.-Reuters