EU Crisis Saps Brazilian Real of Its Strength

The Brazilian real slid today as the widening crisis in the European Union caused pessimistic outlook for the global economic recovery and made the investors’ sentiment shift towards the risk aversion.
The concern about the possible decreasing quality of the banks’ bonds holdings in the debt-laden countries caused the borrowing costs to increase. The yield on January contracts dropped 0.02 percentage point to 11.06 percent.
EUR/BRL traded near 2.2332 today as of 10:15 GMT after opening at 2.2301. USD/BRL traded at its opening level of 1.8010

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