Brazil Real Gains as Hamilton Says Depreciation Stokes Inflation

Brazil’s real rose to a one-month high after a central bank official said a weaker exchange rate has contributed to inflation.

Policy makers aren’t comfortable with a 5 percent annual rate of price increases, Carlos Hamilton, the bank’s director for economic policy, told reporters in Brasilia today. Brazil sees an exchange rate of 2.05 per dollar as more “adequate” when creating its economic forecasts than 2.10, Hamilton said.