Brazilian Central Bank President Alexandre Tombini told the Senate Comissão
de Assuntos Econômicos (Economic Affairs Committee) today that the Bank will
continue to intervene in the foreign exchange market to halt the rise of the US
Dollar against the Brazilian Real. He warned of continued volatility in the
exchange rate which he said is being caused by economic turmoil in
Europe.
The
Central Bank brought the dollar down from a high over R$1.90 last week to
R$1.806 today. The
52-week
range has been R$1.5280 to R$1.9493.
The
government fears that a rising dollar could add to Brazil's inflation rate. The
Bank said a weekly survey of leading economists now expect the rate to reach
5.53% in 2012, slightly higher than the 5.42% rate they expected in the last
weekly survey.
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