Brazilian Real Rises for Seventh Day After Single Investor Sale Order

Brazil’s real rose for a seventh day after a single investor made a sale of foreign currency in the local market, according to BGC Liquidez DTVM, the country’s second largest currency brokerage.

“It is money from one fund to invest in stocks or fixed income,” said Francisco Carvalho, head trader at Sao Paulo- based Liquidez. Carvalho estimated that the order “would have to be at least $1 billion.” He said he doesn’t know who made the trade.

The real gained 0.5 percent to 1.7532 per dollar at 3:53 p.m. in New York, its strongest level since March 12. It is down 0.5 percent this year.

Foreign investors added a net 3.15 billion reais ($1.8 billion) to their Brazilian stock holdings in March, the biggest monthly inflow since September. Investors bought about 39.9 billion reais of stocks and sold 36.7 billion reais in the secondary market, the BM&FBovespa SA exchange said on its Web site yesterday. This was the first monthly inflow this year, after overseas investors sold a total of 3.35 billion reais in the first two months of 2010.

Strength in the real will continue in the following months as exports are boosted by higher commodity prices, according to Banco Safra de Investimento SA. The real may rise to 1.65 per dollar by August, chief economist Cristiano Oliveira said in a telephone interview from Sao Paulo.

In the overnight interest-rate futures market, the yield on the contract due July 2010 rose three basis points, or 0.03 percentage point, in Sao Paulo to 9.22 percent.

To contact the reporter on this story: Camila Fontana in Sao Paulo at cfontana@bloomberg.net

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