The Brazilian real marked its top gains in roughly one week on Tuesday against the U.S. dollar after a credit rating service noted development in the South American nation should be lower than 2 percent, according to Bloomberg.
In October of last year, Moody's Investors Service changed the outlook of South America's largest economy to stable from positive. The median projection of economists and analysts surveyed by the news service said the economy will expand 1.95 percent this year.
The Wall Street Journal reports traders and analysts are focusing attention on monitoring inflation and industrial data in order to determine whether the country is prepared to implement tapering measures on stimulus programs.
The real rose roughly 0.6 percent against the world's reserve currency on Tuesday, matching its biggest gain since the end of December.
Policy makers with the Banco do Brazil recently decided to slash daily offerings on foreign swaps to $200 million from $500 million, according to The Wall Street Journal. The body took the action in the aftermath of the U.S. Federal Reserve deciding last month to cut monetary stimulus measures by $10 billion.
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