Increasing Rates Push Brazilian Real Up

The Brazilian real advanced today against the U.S. dollar, supporting the bullish outlook for the currency, which was prompted by the increasing interest rates.

Henrique Meirelles, the president of the Brazil’s central bank, increased the benchmark lending rate to 9.5 percent from a record-low 8.75 percent to keep the inflation in check. The gross domestic product is expected to grow 6 percent in 2010, supporting the real performance.

USD/BRL traded at 1.752 as of 11:01 GMT today down from the opening rate of 1.753.

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