Rádio Universidade AM

Your answer to question must be based on the text below enti 8840

Your answer to question must be based on the text below entitled "Brazil boosts the dollar".Brazil boosts the dollar   

        How long can the run on the dollar continue? Last year's dollar

slump, with its attendant rise in commodity prices, ended when the

market put paid to it. This time governments are attempting to slow it

down. But it is not, as widely expected, the US government that is doing

this. Instead, the Canadian dollar dropped sharply on Tuesday after the

Bank of Canada issued a warning over the currency's recent strength.

Brazil's government went further, imposing capital controls to stop the

real gaining at the dollar's expense. Other countries, it appears, have

more to lose from a weak dollar than the US does.            

Perhaps as a result, there was a day's pause in the trade that has seen

the dollar hit 14-month lows while oil, denominated in dollars, briefly

hit $80 a barrel before falling. Brazil's imposition of a 2 per cent tax

on capital inflows, to both stocks and bonds, showed strong intent.

This move brought the real, which has risen 54.5 per cent against the

dollar since its nadir, down by 3.8 per cent. The Bovespa stock index,

which has tripled since its low, fell 7.5 per cent in dollar terms at

one point.             Brazil evidently fears that an

overpriced real could endanger its recovery. Other exporters will be

watching closely.

(Source: the Financial Times October 20- www.ft.com, adapted)Compared to Canada, according to the text, Brazil

Questão no QuestionsOf: Your answer to question must be based on the text below enti 8840

Questões similares