Brazil Real Gains as European Consumer Confidence Rises to Two-Year High

Brazil’s real rose as European confidence in the economic outlook rose to the highest level in more than two years in July, boosting speculation that demand for the South American nation’s exports will grow.

The real gained 0.6 percent to 1.7580 per dollar at 5 p.m. New York time, from 1.7690 yesterday. The currency has gained 2.7 percent in July.

An index of executive and consumer sentiment in the 16 euro nations increased to 101.3 from 99 in June, the European Commission in Brussels said today. That’s the highest since March 2008.

“The real is strengthening in correlation with global markets, which were buoyed by the consumer confidence data out of Europe,” said Igor Arsenin, a strategist with Credit Suisse AG in New York.

In the overnight interest-rate futures market, the yield on contracts due in January fell one basis point, or 0.01 percentage point, to 10.82 percent, the lowest since April 23. The yield on the contract due in January 2014 climbed as much as 11 basis points to 12.08 percent, the highest since July 15, before closing at 12 percent.

To contact the reporter on this story: Boris Korby in New York at Bkorby1@bloomberg.net

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