BRAZIL: Real Remains Unchanged As Local Holiday Drains Market Liquidity

A local holiday in S?o Paulo, the main financial center in Brazil, kept the country's stock market closed Monday and drained liquidity from the foreign exchange trading, leading the real to end the session unchanged at R$ 3.2640 per dollar.

According to Correparti's analyst Ricardo da Silva Filho, there were dollar trades in cities where there was no holiday, but the smaller trading volume resulted in an increased bid/ask spread.

"There was no market benchmark to the dollar price. Only those who really needed were trading," he added.

On Tuesday, when the market volume is set to rise again, traders will focus on the developments regarding the pension reform bill, said analysts from H. Commcor.

News are provided by InstaForex