Global Biz

US new move piles appreciation pressure on Brazil

(Xinhua)
Updated: 2010-11-11 09:51

RIO DE JANEIRO - The new quantitive easing move taken by the US government last week has further increased appreciation pressure on the Brazilian currency real, the president of Brazil's Development Bank said Wednesday.

The real will keep on undergoing pressure in the next few months, Luciano Coutinho told a business seminar here earlier in the day.

The injection of $600 billion into the economy by the US Federal Reserve will pile up pressure on countries which enjoy a good economic growth perspective and are attractive to investors, such as Brazil, he said.

"That exerts great pressure over the real," he said.

Coutinho said the Brazilian government is taking necessary measures to halt an excessive valuation of the real and will take further steps if necessary.