Brazil Real Opens Weaker Ahead Of Rate Decision, Bernanke
SAO PAULO (Dow Jones)--The Brazilian real opened lower against the dollar Wednesday with investors cautious ahead of a central bank decision on interest rates at the end of the day and a speech by U.S. Federal Reserve Chairman Ben Bernanke.
The real opened at BRL1.866, weaker than Tuesday's close of BRL1.8605. Tuesday's close was the strongest level for the Brazilian currency since 2000.
Later in the day, Brazilian Central Bank officials will decide on interest rates after the markets close. They are expected to reduce the base Selic rate by 50 basis points to 11.50%, continuing the steady downward march of the rate over the past two years.
Tame U.S. inflation data were released early Wednesday, and Bernanke's testimony before Congress begins 10 a.m. EDT. U.S. consumer prices grew moderately last month, as energy costs retreated sharply, while underlying inflation advanced within market expectations.
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