World Economy
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Brazil Real Rises

Brazil  Real RisesBrazil  Real Rises

Brazil’s real followed commodities higher after a report showed Chinese exports unexpectedly rose last month in yuan terms. The real advanced 0.6% to 4.01 per dollar in Sao Paulo. The Bloomberg Commodity Index, which touched a record low on Tuesday, rose after China’s trade surplus widened and exports recovered. Commodities account for about half of Brazil’s exports. China, Brazil’s top trading partner, imported a record amount of crude last year as oil’s lowest annual average price in more than a decade spurred stockpiling and boosted demand from independent refiners. Iron-ore imports jumped to a record last month, while steel exports climbed as the nation sells its glut overseas. “China’s import of major commodities seems to remain on trend, which is a relief for Brazil,” said Camila Abdelmalack, an economist at CM Capital Markets in Sao Paulo. The real also advanced as retail sales unexpectedly rose in November by the most in a year as shoppers took advantage of holiday discounts. Sales surged 1.5% after a revised 0.5% increase in October.

Financialtribune.com