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Real Gains as Goldman Says Brazil Exporters Need Weaker Currency

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As the real climbed for the first time in five days, Goldman Sachs Group Inc. recommended that Brazil go further in relaxing support for the currency and let it decline more than 10 percent to support exporters.

“Brazil spent the last five years with an overvalued real, which has weighed on its competitiveness,” Alberto Ramos, the chief Latin America economist at Goldman Sachs in New York, said in a telephone interview. “To ignite the ongoing adjustments and support the struggling exporting sector, the country needs a moderately cheap currency at around 3.50.”