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Brazil real ends off fearing more c.bank operation

SAO PAULO: The Brazilian real finished 0.9 percent weaker Monday as investors stocked up on dollars at present lows, fearing the Central Bank might intervene in the market to prevent the US currency from weakening too much, traders said.

The real ended trading at 1.75 per dollar against Friday's close of 1.734. Market players were fretting the Central Bank might step in again after it intervened on Friday, buying dollars.

"Friday's Central Bank intervention forced some investors to stop betting on a weaker dollar and made them buy the US currency today," said one local currency trader.

The monetary authority had bought dollars on Friday after the real strengthened over the last week, boosted by capital inflows linked to foreign direct investment.

Some traders said however the real's strength was not likely to last longer even in the absence of a central bank intervention, as a big amount of foreign bonds issued by Brazilian companies were seen coming due in April.-Reuters