Currency exchange rate 'bounce back' for real

The currency exchange rate for the Brazilian real has "bounced back" on the markets.

Investors have "defied government threats to weaken the currency", as the real rose benefited from strong domestic growth, Reuters reported.

Jose Carlos Amado, a currency trader at the Renascenca brokerage in Sao Paulo, told the news agency: "The market continues to be liquid, with a lot of inflows.

"This should hold the dollar back [against the real], with no chance of gains."

However, Goldman Sachs has claimed that the real is still the most overvalued major currency in the world.

Guido Mantego, the country's finance minister, has recently expressed a desire to talk down the value of the real.

This is due to the fact that the country's exporters have seen the cost of their goods almost double since 2003.

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Posted by Sarah Pitton