Real Traders Defy Mantega as Currency Advances: Brazil Credit
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Brazilian Finance Minister Guido Mantega is failing to convince currency traders that the real is poised to slump as foreign investment pours into the country’s stock and fixed-income markets.
Four days after Mantega told investors at an Aug. 30 conference in Sao Paulo that the real wouldn’t remain at such “favorable” levels, the currency jumped to an eight-month high for the year. Traders’ confidence in the real is growing as they are paying the smallest premium since April to insure against declines, options contracts show.