The Brazilian Real fell to a 7-week low on a tightened trade surplus. Brazilian imports rose to 3.36 billion dollars in the week ended November 5 from 1.99 billion dollars the previous week, Industry and Trade Ministry said in Brasilia today. The trade surplus fell to 139 million dollars from 693 million dollars. The Brazilian Real fell further due to a government initiative to create a 10 billion dollar fund to assist Brazilian companies who want to expand overseas. ''We are seeing much more clearly now the negative impact that the strong real is having on the trade balance because of traditionally higher import volumes at this time of year,'' said Luiz Carlos Barroso Simao, partner and chief strategist in Rio de Janeiro at Mandarim Investimentos.
The Brazilian Real fell for a fourth day in forex trading, declining by 1.1 percent to 1.8232 per dollar in Ney York, its weakest since October 4 on a closing basis. Brazil's currency has weakened 4.7 percent altogether this month, reducing its advance this year to 17 percent.
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