Brazil's Real Opens Weaker Ahead Of Trade Data

The Brazilian real opened weaker against the U.S. dollar Monday ahead of data likely to show the first monthly trade deficit since 2001.

The real opened at BRL2.355 per dollar, weaker against the Friday close of BRL2.317.

Later Monday, Brazil's government is due to release January foreign trade data. A survey of experts by Dow Jones Newswires forecast a monthly deficit of $788 million. If confirmed, January would mark the first monthly deficit since March of 2001.

Traders said the Brazilian real was also being hurt by risk aversion among foreign investors, many of whom are increasingly worried about Brazilian economic performance this year.

Financial market analysts and economists consulted in a weekly poll released Monday by the Brazilian Central Bank once again reduced their forecast for economic growth this year. The analysts are now predicting growth of only 1.8% in 2009, down from last week's forecast of 2.0%. Growth in 2008 was an estimated 5.6%.

The strength of the U.S. dollar against the euro and other global currencies Monday was another factor hurting the real, traders said.