FX : Brazil Real Opens At Weakest Level In A Month
Brazil Real Opens At Weakest Level In A Month
SAO PAULO (Dow Jones)--Weaker commodity prices caused Brazil's real to open at its weakest level since July 29.
The real opened at BRL1.903 to the dollar after closing Friday at BRL1.882.
A fall in Chinese equity markets signaled weaker demand for oil and other important commodities at the start of the week. Brazil's currency is largely linked to the commodities trade, forcing the real to its weakest level in over a month.
"We are still close to fair value for the real," said Flavio Serrano, an economist at BES Investments in Sao Paulo.
He said a fair price range for the real is between a strong BRL1.85 to the dollar to a weaker BRL1.95.
The euro also slipped against the dollar Monday, retreating from last week's rally as August comes to a close.
Brazilian assets all opened lower on Monday, with equities starting the day a full percentage point below Friday's close.
-By Kenneth Rapoza, Dow Jones Newswires; (5511) 2847-4541;
kenneth.rapoza@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=LbLx1kOuFl2QgPYfU9%2Bw8g%3D%3D. You can use this link on the day this article is published and the following day.
