Market News
Brazil's currency weakens, changing course despite aggressive rate strategy - REUTERS
By Marcela Ayres and Fernando Cardoso
- Brazilian real fell against U.S. dollar after opening 1% higher
- Fiscal concerns intensified market pessimism
- C.bank raised rates by 100 bps, signaled same-size hikes through March
BRASILIA, Dec 12 (Reuters) - Brazil's currency reversed course and weakened against the U.S. dollar on Thursday, despite a larger-than-expected interest rate hike by the central bank and its signal of more aggressive increases ahead.
After opening the session 1% higher, the Brazilian real shifted direction to end the day down 0.9% at 6.01 per dollar. Meanwhile, the long end of the yield curve widened, reversing an initial downward move.
