BRASILIA: Brazil’s real followed commodities higher after a report showed Chinese exports unexpectedly rose last month in yuan terms.
The real advanced 0.6 percent to 4.0050 per dollar at 9:49 a.m. in Sao Paulo. The Bloomberg Commodity Index, which touched a record low on Tuesday, rose after China’s trade surplus widened and exports recovered. Commodities account for about half of Brazil’s exports.
China, Brazil’s top trading partner, imported a record amount of crude last year as oil’s lowest annual average price in more than a decade spurred stockpiling and boosted demand from independent refiners. Iron-ore imports jumped to a record last month, while steel exports climbed as the nation sells its glut overseas.
“China’s import of major commodities seems to remain on trend, which is a relief for Brazil,” said Camila Abdelmalack, an economist at CM Capital Markets in Sao Paulo.
The real also advanced as retail sales unexpectedly rose in November by the most in a year as shoppers took advantage of holiday discounts. Sales surged 1.5 percent after a revised 0.5 percent increase in October, the national statistics agency said Wednesday. Economists had expected a contraction.
Swap rates on the contract maturing in January 2017, a gauge of expectations on interest-rate moves, dropped 0.03 percentage point to 15.49 percent.
Mercedes-Benz sees Brazil truck sales up 18% in 2020
SAO BERNARDO DO CAMPO, Brazil: The Brazilian unit of German automaker Mercedes-Benz (DAIGn.DE) expects overall domestic truck sales to rise...
