Brazil: Real Gains

Brazil’s real rose 1.7 percent Thursday to 2.416 to the dollar after Finance Minister Antonio Palocci indicated the government would not try to weaken the currency. Palocci’s comment late Wednesday that “the floating exchange rate is the best solution” dampened speculation that the central bank would sell reais for dollars. Traders had driven down the real Tuesday and Wednesday after central bank monetary policy director Rodrigo Azevedo said the bank “will be back in the market” to sell reais for foreign currency.