Brazilian Real Goes Up with Rising Inflation

The Brazilian real edged up today as the index of consumer prices rose more than the analysts expected, increasing probability of an interest rate hike by the central bank.

The IPC-S index (the weekly index of consumer prices) of the Getulio Vargas Foundation rose 1.27 percent as of January 31, 2011, while the analysts at Bloomberg predicted an increase by 1.22 percent. The last week’s change rate was the biggest in about a year.

USD/BRL slipped from 1.6680 to 1.6660 as of 13:58 GMT today after it previously jumped to 1.6755.

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