Brazil Real Trades Stronger Than 2 Per Dollar as Inflow Tax Cut

Brazil’s real traded stronger than 2 per dollar for a fourth day as the government cut a tax on foreign investment in real estate funds, prompting speculation inflows will sustain the currency’s rally.

The real slid 0.1 percent to 1.9915 per U.S. dollar at close in Sao Paulo after advancing beyond 2 on Jan. 28 for the first time in almost seven months. Its 3 percent rally in January is the biggest among the 16 major currencies tracked by Bloomberg. Swap rates on the contract due in January 2017 rose two basis points, or 0.02 percentage point, to 8.85 percent.