Brazil Real Weakens
BRASILIA--Brazil's real slid against the dollar to end well weaker Tuesday as nervousness over the outlook abroad, perceptions of thinning liquidity and market talk of a shift in the government's preferred trading band locally weighed in against the currency.</br></br>The real exited from regular trading at BRL2.0691 to the dollar after ending at BRL2.0505 to the dollar Monday, according to Tullett Prebon via Factset.</br></br>Traders noted investors bought dollars as "insurance" ahead of a local holiday later this week as uncertainties lingered abroad about resolution of a nagging debt crisis in Greece and negotiations to avoid a "fiscal cliff" threatened by debt caps in the U.S. at the outset of 2013.</br></br>"There's been some stress in the market in recent sessions in reaction to developments in the U.S. and Europe," noted Alfredo Barbutti, analyst at the BCG Liquidez brokerage in Sao Paulo.</br></br>Alongside nervousness brought by uncertainties abroad, market participants said talk emerged Tuesday that the government could weigh a weaker trading range for the real as part of its efforts to reinforce the local economy. The real has been trading in a range of around BRL2.00 to BRL2.10 since the middle of the year.