The Brazilian real edged higher in value against the U.S. dollar on Wednesday after the government of the South American nation eliminated a 6 percent tax applied to international investors' purchase of bonds, Bloomberg reports.
The monetary unit of the largest economy in Latin America registered advances that climbed as high as 1.5 percent against the world's reserve currency, coming as a surprise after the real checked in with losses of 6.5 percent against the dollar during the month of May. Those losses were the real's worst against the greenback since September 2011.
Monetary policy director Aldo Mendes with the Brazilian Central Bank said earlier this week that the majority of worldwide monetary units have been slipping against the U.S. dollar, The Wall Street Journal reports.
"There's nothing I can do," the monetary policy director said, according to The Journal. "We only react when we aren't together with the others. If we're moving in step with the other currencies of the world, there's not reason to enter the market."
Finance minister Guido Mantega said ridding the market of the tax came as a result of changes to the global economy, according to The Journal.
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