Brazil's Real Opens Stronger On Confirmation Of Recession's End

SAO PAULO --The Brazilian real opened stronger against the U.S. dollar Friday following confirmation that the local economy pulled out of recession in the second quarter.

The real opened at BRL1.815 to the dollar on the BM&FBovespa exchange in Sao Paulo, stronger against the Thursday close of BRL1.821.

Early Friday, the Brazilian Census Bureau, or IBGE, reported Brazil's gross domestic product expanded 1.9% in the second quarter compared with the first quarter this year, confirming ideas that Brazil was hit less hard by the global recession and will pull out of it quicker than most.

The figure was at the high end of market expectations.

Meanwhile, news that Chinese industrial production rose 12.3% in August also increased investor appetite for risk.

The weakness of the dollar worldwide had an effect on the local rate with international investors becoming increasingly concerned about the U.S.'s fiscal situation.