Brazilian Real Gains to a Seven-Week High on Foreign Capital Speculation

Brazil’s real gained for a seventh day, reaching the strongest level in seven weeks, on speculation the nation’s companies and rising interest rates will lure more foreign capital.

The real appreciated 0.3 percent to 1.6698 per dollar at 7:07 a.m. New York time, from 1.6749 yesterday. It reached 1.6686, the strongest intraday level since Oct. 18. The currency extended the longest winning streak since April.

BTG Pactual, the Brazilian bank controlled by billionaire Andre Esteves, said yesterday it agreed to sell a $1.8 billion stake to a group of investors including the Rothschild and Agnelli families as well as Middle East and Asia funds. That, and the prospect of a higher Selic rate next year, is boosting speculation that dollar inflows will accelerate, said Francisco Carvalho, a director at BGC Liquidez, the second-biggest brokerage dealing with dollars on the Sao Paulo exchange.

Brazil may take additional measures to stem gains of its currency if the Group of 20 nations are unable to find a way out of the global currency war, Finance Minister Guido Mantega said yesterday.

“It’s not for nothing that Mantega is talking about foreign-exchange measures,” Carvalho said by phone today.

To contact the reporters on this story: Josue Leonel in Sao Paulo at jleonel@bloomberg.net; Alexander Cuadros in Sao Paulo at acuadros@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulous@bloomberg.net

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