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Brazil real ends firmer as foreigners inject dlrs

SAO PAULO: The Brazilian real finished stronger Tuesday as capital inflows linked to foreign direct investment boosted the local currency, traders said.

The real ended trading at 1.738 per dollar, 0.4 percent firmer than the previous close. The real had come under pressure on Monday due to volatility in world stock markets.

"A stream of capital inflow guaranteed the real's strength today," said one local currency trader. Traders estimated a net $170 million had flowed into the foreign exchange market.

The currency was also supported by stable inflation data released earlier in the day.

Brazil's IPCA inflation index, a key government gauge for shaping monetary policy, showed a 0.13 percent increase in February, compared with January's 0.62 percent rise, the Brazilian Institute of Geography and Statistics (IBGE) said.

Another benchmark for consumer prices, the University of Sao Paulo's Fipe inflation index, showed a deflation of 0.15 percent in the four weeks to ending March 8, showing a slightly greater price dip than the 0.23 percent reported in the previous four weeks. -Reuters