Strong capital inflows have pushed up Brazil's currency, the real, sharply this year. It ended barely changed Wednesday at 1.7450 reals to the dollar. Positive Brazil sentiment also is helping the government lengthen its debt maturities, a sign that investors are growing more comfortable with the country's long-term prospects. Mr. Figueiredo said the average maturity of government treasury bonds will likely widen to more than 21 months in April vs. 17 months this month and only eight months in January. Brazil's economic policy committee is next scheduled to meet April 19.
Few analysts expect another rate move until then.
The Brazilian real has appreciated in value against the dollar. That is, a real can buy more dollars or conversely one dollar can buy fewer reals. An economic expansion, low inflation and foreign investment are factors cited in the article leading to the appreciation of the real. Low inflation increases the competitiveness of Brazilian goods and increases demand exports and therefore the demand for the real. As the demand for the real rises its value increases.