Dollar Gets a Three-Year High in Brazil

US dollar Despite interventions by Brazil's Central Bank, the BC, which for three times tried to contain the bullish streak of the American greenback, the US dollar gained 3.46% this Wednesday, December 3, closing the day at 2.475 Brazilian reais against the dollar. Meanwhile, a new report shows foreign investors leaving Brazil heavily in November.

This week alone, the American currency accumulated gains of almost 7%. For the whole year, up to now, the dollar appreciated 39.3% in relation to the real. This Wednesday's exchange rate was the highest since June 2005.

The dollar advance coincided with a report showing foreign investors taking their money out of Brazil. According to Brazil's Central Bank, US$ 7.15 billion were taken out of the country in November, the biggest amount of dollars withdrawn since January 1999, when US$ 8,58 billion left Brazil.

São Paulo's stock exchange, the Bovespa, closed with a slight increase of 0.91% after a day filled with oscillations. During the trading session, the Ibovespa, Bovespa's main index, varied from minus 3.3% to plus 1.15%. Volume was a low 3.42 billion reais (US$ 1.38 billion).

The market's swinging mood reflected in part the international high spirits mainly in Wall Street and European stock markets.

On the down side, the Brazilian market declined after news that Brazil's mining company Vale, former known as Vale do Rio Doce, had laid off 1,300 employees and announced that 5,500 workers would go on collective vacation due to low demand for its goods. Vale's shares still went up 0.22%.

At the end of October, Vale had already informed that it intended to reduce the production of iron ore production and other ores and byproducts in the states of Minas Gerais, Rio de Janeiro and Amapá, besides industrial plants and mines abroad. Plants in China, Indonesia, Norway and France will have their production also curtailed. Vale has 62,000 employees all over the world.

Roger Agnelli, the company's president, explained that the cut of 30 million metric tons, annually, in the iron ore production is a "momentary adjustment" in response to the "very heavy shake-out" the world is undergoing due to the international financial crisis.

The Brazilian steel group Gerdau informed that it will anticipate stoppage of its subsidiaries Açominas and Siderperú (Empresa Siderúrgica del Peru) for maintenance work. As admitted by the company, the measure's intention is to reduce production when worldwide demand for steel, from automakers and building contractors among others, has been reduced.

The president of the group, André Gerdau Johannpeter, acknowledged that Gerdau may take similar steps in other plants especially in the United States and in some Latin America countries. The company is expecting a 24% contraction in the last quarter of 2008 when compared to the same period last year.

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Serra on Brazil Elections: ‘No Dirty Tricks!’

The vote count in São Paulo, the country’s largest electoral district, with 7,771,503 eligible ...

Led by Cereals Brazil Agribusiness Reaches Record Export

Brazilian agribusiness exports generated US$ 4.287 billion in September, an increase of 12.2% when ...

Brazil Unhappy with Argentina’s Policy on External Tariffs

According to Brazil, the decision by Argentina to maintain a list of exclusions from ...

Brazil Is Coming to (New York) Town

This December, when the temperature outside is a balmy ten degrees, New Yorkers will ...

Hilary Clinton: We Expect Thousands of Brazilian Students in the Next Few Years

US Secretary of State Hillary Clinton delivered the opening remarks at the “Brazil-U.S.: Partnership ...

Favela Kids in Brazil Get 50 Sports Centers

Brazil’s Minister of Sports, Agnelo Queiroz, on Friday, February 3, inaugurated 50 more Segundo ...

Obama Increases Pressure on Brazil to Get Boeing’s F-18 Fighter Planes

The United States is still very interested in selling 36 F-18 fighter planes to ...

A People Dumping Place in Brazil Teaches Princeton Anthropologist to Get Involved

While doing fieldwork for his Ph.D. in his native Brazil in 1995, anthropologist João ...

US$ 44 Million in Advertising and Repairs to Make Sí£o Paulo, Brazil, More Touristic

The government of the state of São Paulo, in southeastern Brazil, launched Wednesday, August ...

Brazilian Electronic Bazaar Brings Middle East Closer

A virtual store is ensuring that Arab and Islamic articles reach cities in the ...