Real Declines as Analysts Lower GDP Forecast

The Brazilian real declined today as analysts lowered forecast for the country’s economic growth and fears about the futures of the eurozone returned after the initial optimism caused by the outcome of the Greek elections.
Economists predict that Brazilian gross domestic product would grow 2.3 percent this year, while the consensus forecast was at 2.53 percent just a week ago. That is compared to the 2.7 percent advance in 2011. The yield for Spain’s bonds maturing in 10 years climbed above the 7 percent level for the first time since the introduction of the euro.
USD/BRL climbed from 2.0483 to 2.0675 as of 15:45 GMT today.

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