Brazil moves to halt real's rise

Brazilian authorities have announced new steps to curb the rise in the country’s currency, the real, as it rides a 12-year high against the dollar.

Reuters

Under new regulations, a tax on financial transactions will be boosted to a maximum of 25 per cent in an attempt to curb speculation.

The new move already seems to make an impact with the dollar gaining on the real.

Brazil, which has one of the world's fastest-growing ecoomies, is worried that the rising real will dent economic activity by making its exports more expensive. The central bank's base rate of 12.5 per cent has attracted huge amounts of capital.

The real has appreciated more than eight per cent against the dollar since the start of the year.

Brazilian officials have criticised the United States for flooding the world with cheapening dollars. They have also taken China to task for not floating its currency.