Dollar Drops for Third Straight Day, Closing Week Down 4.5 Percent

A member of the Central Bank again mentioned the authority's power to act; on Wednesday the bank's president Roberto Campos said he could intervene in the exchange rate as far as necessary.

RIO DE JANEIRO, BRAZIL - The US currency closed down for the third consecutive day and ended the week depreciating by 4.54 percent. On Friday, May 22nd, the dollar fell by 0.2 percent and closed at R$5.574.

On the investors' radar were the statements from the Central Bank's economic policy director, Fabio Kanczuk, who, on Friday morning, said that the authority is "very well" prepared to correct distortions in the exchange rate and is cautious about further interest rate cuts.

"This Central Bank is significantly less interventional than it was with other governments. With these statements . . .

To read the full NEWS and much more, Subscribe to our Premium Membership Plan. Already Subscribed?