Brazil’s real had its biggest weekly gain one and one-half years. The nation imposed a 6 percent tax on international bond sales and loans, which Finance Minister Guido Mantega said was an attempt to stem the real’s 44 percent gain against the dollar since the end of 2008.
The central bank said March 29 the economic costs are “too high” to cut inflation to its 4.5 percent goal this year from a more than two-year high of 6.13 percent currently. Investors are speculating the government will shift strategy and allow the real to strengthen as a counterweight to inflation, said Mariano Cirello, who manages 5 billion reais ($3 billion) as chief investment officer at Mapfre Investimentos in Sao Paulo.
The real was up 3.3 percent this week, the most since the period ended July 17, 2009.
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