Financial Times FT.com

Brazil triggers talk of action to curb real

By Jonathan Wheatley in São Paulo and Peter Garnham in,London

Published: November 11 2009 02:00 | Last updated: November 11 2009 02:00

Brazil's finance minister, Guido Mantega, has sparked speculation that his government will introduce further capital controls after declaring that foreign exchange markets have given the real an "exaggerated" valuation.

Brazil last month introduced a 2 per cent tax on foreign portfolio investments to stem the appreciation of the real - which has risen more than a third against the dollar this year - and reduce volatility in exchange rates.

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